What costs are NOT taken into account in the Dog Haus initial investment estimates?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
The figures provided exclude any special connection and/or tap fees, EDD or sales taxes, which are based on projected sales.
These estimates presume that you will receive a "vanilla shell" from your landlord.
For purposes of these estimates, a "vanilla shell" includes leased premises with one restroom built to local code specifications in a location specified in the tenant improvement plans for your Dog Haus Restaurant; (2) sheet-rocked, taped and painted walls; (3) concrete floor, broom clean; (4) grease interceptor; (5) 200-40 amp low voltage electrical service distributed to local code specifications; (6) fluorescent 4' x 2' lighting fixtures with usually one fixture per 150-200 square feet; (7) HVAC system distributed at one ton per 175-200 square feet depending upon local climate conditions and use, generally with a gas heating system and an electrical air conditioning system; (8) fire sprinklers per local code specifications distributed throughout the premises designed for retail use; and (9) water, gas, cable and telephone service stubbed to the rear of the premises.
If you do not receive a "vanilla shell" from your landlord, your leasehold construction costs may substantially exceed these estimates.
These estimates do not include demolition expenses.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–31)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the initial investment estimates do not include special connection and/or tap fees, EDD, or sales taxes. These exclusions are significant because they represent additional, potentially substantial costs that a franchisee must account for when planning their budget. The estimates also presume that the franchisee will receive a "vanilla shell" from their landlord.
A "vanilla shell" is defined as leased premises with one restroom built to local code specifications, sheet-rocked, taped, and painted walls, a concrete floor, a grease interceptor, 200-40 amp low voltage electrical service, fluorescent lighting, an HVAC system, fire sprinklers, and water, gas, cable, and telephone service stubbed to the rear of the premises. If the franchisee does not receive a "vanilla shell," the leasehold construction costs may substantially exceed the initial estimates. Furthermore, the estimates do not include demolition expenses, which could be a significant cost if the location requires extensive modifications before the build-out.
Prospective Dog Haus franchisees should carefully evaluate the condition of the premises they intend to lease and negotiate with the landlord to receive a vanilla shell to avoid unexpected costs. They should also obtain detailed quotes for special connection fees, EDD, sales taxes, and potential demolition expenses to develop a more accurate estimate of their total initial investment. Understanding these exclusions is crucial for making informed financial decisions and ensuring the long-term success of the franchise.