When are the development fees for a Dog Haus franchise due, and to whom are they paid?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise noted, all fees are uniformly imposed by and payable to us by electronic funds transfer or other automatic payment mechanism we designate and are non-refundable. You authorize us to debit from your designated primary business checking or savings operating account for each week any funds due and payable to us for royalty fees and all other sums that you owe to us or our affiliate. These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Dog Haus Restaurant. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments. We currently do not offer financing for any purpose, but reserve the right to do so in the future. Please see Item 10 for further information. We do not guarantee your note, lease or other obligation.
- The Initial Franchise Fee and the Development Fee are described in Item 5 of this Disclosure Document. The Initial Franchise Fee and the Development Fee are not refundable.
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 and is paid to Dog Haus. Item 5 of the FDD provides more information regarding the development fee. The FDD also states that the development fee is non-refundable.
Prospective franchisees should note that the FDD emphasizes the use of electronic funds transfer or other automatic payment mechanisms designated by Dog Haus for all fees. Franchisees authorize Dog Haus to debit their designated primary business checking or savings operating account weekly for royalty fees and all other sums owed to Dog Haus or its affiliates. This mandatory payment method ensures timely payments but also requires franchisees to maintain sufficient funds in their accounts to avoid penalties or disruptions.
Understanding the payment terms and conditions for all fees, including the development fee, is crucial for potential Dog Haus franchisees. The non-refundable nature of these fees underscores the importance of thorough due diligence before signing any agreements. Franchisees should carefully review Item 5 of the FDD, as referenced in Item 7, to fully understand the details and implications of the development fee and other financial obligations.