What are the administrative assessment fees for Dog Haus franchisees who violate reporting requirements?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails to transmit the reporting information to Franchisor in the manner, at the times, and in the formats specified by Franchisor, in addition to all other remedies available to Franchisor under this Agreement, Franchisee shall pay Franchisor, upon demand, the applicable Administrative Assessment as reimbursement to Franchisor.
Franchisor and Franchisee acknowledge that violations of these reporting requirements will damage Franchisor in amounts that cannot be quantified as of the Effective Date and that each of these Administrative Assessments is a reasonable, good faith estimate of those damages.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, if a franchisee fails to submit reporting information in the manner, at the times, and in the formats specified by Dog Haus, the franchisee will be required to pay Dog Haus an applicable administrative assessment. This assessment is in addition to any other remedies available to Dog Haus under the Franchise Agreement.
The FDD states that Dog Haus and the franchisee acknowledge that violations of these reporting requirements will damage Dog Haus in amounts that cannot be precisely quantified. Therefore, each administrative assessment is considered a reasonable, good-faith estimate of those damages.
Prospective franchisees should note that the specific amount of these administrative assessment fees is not detailed in this section of the FDD. It is important for potential franchisees to understand all potential fees and costs associated with the franchise. Therefore, it is recommended that prospective franchisees ask Dog Haus for a detailed schedule of these administrative assessments and under what specific circumstances they would be applied.