Who bears the expense of modifications prescribed by the Dog Haus Franchisor?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall comply, at Franchisee's sole expense, with Franchisor's directions regarding changes in the Dog Haus Marks and Dog Haus System within a reasonable time after written notice from Franchisor.
Franchisor shall have no liability to Franchisee for any cost, expense, loss or damage that Franchisee incurs in complying with Franchisor's directions and conforming to required changes.
- 7.26 Refurbishment of Franchised Restaurant.
At Franchisor's request, but not more often than once every five (5) years unless sooner required by the Lease, Franchisee shall refurbish the Franchised Restaurant, at its own expense, to conform to the building design, trade dress, color schemes, and presentation of the Dog Haus Marks in a manner consistent with the Then-Current public image for new or remodeled Dog Haus Restaurants, including, without limitation, replacement or renovation of equipment, remodeling, redecoration, and modifications to existing improvements and reasonable structural changes that Franchisor may reasonably require or that may be required by Applicable Law.
Franchisee's costs for the required refurbishment shall not exceed $100,000 for the interior of the Franchised Restaurant or $50,000 for the exterior of the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with modifications prescribed by the franchisor. Specifically, the franchisee must comply with Dog Haus's directions regarding changes to the Dog Haus Marks and Dog Haus System at their own expense. Dog Haus will not be liable for any costs, expenses, losses, or damages the franchisee incurs while adhering to these required changes. This includes implementing changes to the Dog Haus System within the time periods specified by Dog Haus after receiving notice.
This obligation extends to various aspects of the franchise operation. For example, at Dog Haus's request, but not more often than once every five years (unless sooner required by the lease), the franchisee must refurbish the franchised restaurant at their own expense. This refurbishment must align with the current public image for new or remodeled Dog Haus restaurants, potentially involving equipment replacement, remodeling, redecoration, modifications to existing improvements, and reasonable structural changes required by Dog Haus or by applicable law. The costs for these refurbishments are capped at $100,000 for the interior and $50,000 for the exterior of the restaurant.
This arrangement is fairly typical in franchising, where franchisees generally bear the costs of keeping their locations up-to-date and compliant with the franchisor's evolving brand standards. Prospective Dog Haus franchisees should carefully consider these potential expenses when evaluating the financial feasibility of the franchise, as these costs can significantly impact profitability and require careful budgeting and financial planning. It is important to maintain open communication with Dog Haus to understand the scope and timing of any planned modifications or refurbishments to adequately prepare for the associated costs.