When is the Default Reimbursement fee due for a Dog Haus franchise, and what does it cover?
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. |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a Default Reimbursement fee is charged if a franchisee defaults under their Franchise Agreement. This fee covers Dog Haus's costs and expenses resulting from the franchisee's default.
The Default Reimbursement fee is due either within 5 days after the franchisee cures their default, or immediately on demand from Dog Haus if the default is not cured. This means a franchisee must promptly address any defaults to avoid immediate payment demands, but will still be responsible for covering Dog Haus's expenses related to the default even if it is resolved.
This fee is important for prospective franchisees to consider, as it highlights the financial consequences of failing to comply with the Franchise Agreement. Franchisees should ensure they understand their obligations and have a plan to address any potential defaults to minimize the risk of incurring this reimbursement fee. It is also worth noting that the FDD specifies that all fees are generally payable via electronic funds transfer or other automatic payment mechanisms, and are non-refundable.