factual

When are the Development Fees for a Dog Haus Area Development Agreement due?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF EXPENDITURE LOW HIGH METHOD OF PAYMENT WHEN DUE
Initial Franchise Fee1 $40,000 $40,000 Cash AtSigning Us
BUILD-OUT COSTS
Utility Deposits, Fees & Licenses2 $5,000 $10,000 Cash As Incurred City, County, State
Pre-Construction Cost (Architect, $45,000 $85,000 As Arranged As Incurred Dog Haus Approved
Project Manager, Plans, Permits) 3 Suppliers

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 Development Fee is due at signing. This is detailed in Item 7, which outlines the estimated initial investment for a Dog Haus franchise. Specifically, the table included in Item 7 lists the Development Fee alongside other initial costs.

Prospective franchisees should note that the Development Fee, like the Initial Franchise Fee, is non-refundable. This means that once the agreement is signed and the fee is paid, it will not be returned, even if the franchisee later decides not to proceed with the development. This is a standard practice in franchising, as the fee compensates Dog Haus for the time and resources spent in evaluating and approving the franchisee and reserving the territory for development.

Understanding the timing and non-refundable nature of the Development Fee is crucial for potential Dog Haus area developers. Franchisees should carefully consider their financial situation and development plans before signing the agreement and paying the fee. It is advisable to seek professional financial and legal advice to fully understand the implications of this investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.