What are the circumstances under which Dog Haus would charge an Interim Management Fee, and how is that fee calculated?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
fault is not cured. | Payable if you default under your Franchise Agreement. |
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit (estimated to be $1,000 - $5,000) plus interest at the highest rate allowed by law, which is currently 10% in California (not to exceed 18%) 2 | On demand | Payable if an audit shows an understatement of 3% of Gross Sales or more. |
| Interim Management Fee | $500 per day, plus the actual out of pocket costs we incur, if any. |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, an Interim Management Fee may be charged to a franchisee under specific circumstances related to a default of the Franchise Agreement. If a franchisee is in default, Dog Haus may elect to assume interim management of the franchised restaurant. This can occur during the period allowed for correcting the default or as an alternative to immediately terminating the Franchise Agreement.
In the event that Dog Haus assumes interim management, the franchisee will be charged $500 per day for the management services. In addition to the daily fee, the franchisee is responsible for covering any actual out-of-pocket costs incurred by Dog Haus during the period of interim management. These costs are charged as they are incurred.
This fee structure is designed to compensate Dog Haus for the expenses and effort involved in managing a restaurant that is not being properly operated by the franchisee. It also serves as a financial disincentive for franchisees to fall into default, as the costs of interim management can be significant. Franchisees should be aware of the conditions that could trigger this fee and take steps to ensure compliance with the Franchise Agreement to avoid such charges.