For Dog Haus, what is the definition of "Average" used in the financial performance representation?

According to Dog Haus's 2025 Franchise Disclosure Document, the term "Average" in the context of financial performance is specifically defined in relation to Gross Sales. The "Average" is calculated by dividing the aggregate Gross Sales by the total number of franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens. This calculation is performed for units open more than one year as of December 31st for the years 2022, 2023, and 2024.

This definition is important for prospective franchisees because it provides clarity on how Dog Haus calculates and presents its financial performance data. By understanding that the average is derived from the total gross sales of restaurants open for more than a year, franchisees can better assess the potential revenue of different Dog Haus concepts (Fast Casual, Biergarten, and Remote Kitchen). This also allows potential franchisees to compare the average sales figures against the median sales figures provided in the FDD to understand the distribution of sales performance across different locations.

It is crucial to note that these averages are based on historical data from existing franchises and do not guarantee future performance. The FDD also specifies that the financial performance representations do not include costs of sales, operating expenses, or other costs that would be deducted from Gross Sales to determine net income or profit. Therefore, while the average gross sales figures provide a benchmark, prospective franchisees must conduct their own independent investigation of all costs and expenses to accurately project their potential profitability with Dog Haus.