How does Dog Haus collect transfer fees in Washington?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer Fee" means the $17,500 fee that Area Developer must pay Franchisor as a condition precedent to an Assignment of this Agreement.
9.4.7 Area Developer shall pay Franchisor the Transfer Fee to apply against Franchisor's administrative and other costs to process the Assignment.
Area Developer must simultaneously transfer its rights all contracts for which continuation is necessary for operation of the Dog Haus Restaurants to the Proposed Buyer and satisfy any separate conditions to obtain any third party consents required for the transfer of Area Developer's rights to the Proposed Buyer.
The Proposed Buyer must execute all other documents and agreements required by Franchisor to consummate the Assignment.
If the Proposed Buyer is a corporation, limited liability company or other business Entity, each person who at the time of the Assignment, or later, owns or acquires, either legally or beneficially, twenty percent (20%) or more of the equity or voting interests of the Proposed Buyer must execute a Guarantee in a form acceptable to Franchisor.
- 9.4.9 Area Developer's right to receive the sales proceeds from the Proposed Buyer in consideration of the Assignment shall be subordinate to the obligations of the Proposed Buyer owed to Franchisor and its Affiliates under, or pursuant to, this Agreement or any other agreement.
All contracts by and between Area Developer and the Proposed Buyer shall expressly include a subordination provision permitting payment of the sales proceeds to Area Developer only after any outstanding obligations owed to Franchisor and its Affiliates are fully satisfied.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Area Developer must pay Dog Haus a $17,500 Transfer Fee. This fee is a condition that must be met before the Area Developer can assign their Area Development Agreement to a proposed buyer.
Specifically, the Area Developer is required to pay the Transfer Fee to Dog Haus. This fee is intended to cover Dog Haus's administrative and other costs associated with processing the assignment of the Area Development Agreement. The Area Developer must also ensure that they transfer all necessary contracts for the Dog Haus Restaurants' continued operation to the proposed buyer.
In addition to the transfer fee, the proposed buyer must execute all documents and agreements required by Dog Haus to complete the assignment. If the proposed buyer is a business entity, any individual owning 20% or more of the equity or voting interests must execute a guarantee in a form acceptable to Dog Haus. Furthermore, the Area Developer's right to receive sales proceeds from the proposed buyer is subordinate to any obligations the buyer owes to Dog Haus or its affiliates. The contracts between the Area Developer and the proposed buyer must include a subordination provision to ensure that Dog Haus is paid first.