What is the condition for Dog Haus to collect transfer fees from a franchisee in Washington?

According to Dog Haus's 2025 Franchise Disclosure Document, an Area Developer must pay a Transfer Fee of $17,500 to Dog Haus as a condition before an assignment of the Area Development Agreement can be made. This fee is intended to cover Dog Haus's administrative and other costs associated with processing the assignment.

In addition to paying the transfer fee, the Area Developer must also ensure that they transfer all necessary contracts for the Dog Haus Restaurants' continued operation to the proposed buyer. They must also meet any separate conditions required to obtain third-party consents for the transfer of their rights to the proposed buyer. The proposed buyer must also execute all documents and agreements required by Dog Haus to finalize the assignment.

Furthermore, if the proposed buyer is a corporation, limited liability company, or another business entity, any individual who owns or acquires 20% or more of the equity or voting interests must execute a guarantee in a form acceptable to Dog Haus. The Area Developer's right to receive sales proceeds from the proposed buyer is subordinate to any obligations the buyer owes to Dog Haus and its affiliates under any agreement. All contracts between the Area Developer and the proposed buyer must include a subordination provision that allows for the payment of sales proceeds to the Area Developer only after all outstanding obligations to Dog Haus and its affiliates have been fully satisfied.