What is excluded from 'Gross Sales' when calculating the Royalty Fee for a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
hen we determine, it is warranted by a unique or compelling situation.
ITEM 6 OTHER FEES 1
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee3 (Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant) | 6% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
| Royalty Fee3 (Dog Haus Remote Kitchen) (Remote Kitchen Addendum) | 4% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Royalty Fee is calculated as a percentage of Gross Sales. For Dog Haus Fast Casual and Biergarten Restaurants, the royalty fee is 6% of Gross Sales, while for Remote Kitchen locations, it is 4%.
Gross Sales for both types of Dog Haus franchises include all revenue from retail and wholesale sales of goods, merchandise, services, or products from the restaurant's operations. However, certain items are specifically excluded from the Gross Sales calculation. These exclusions directly reduce the revenue on which Dog Haus calculates its royalty, potentially lowering the franchisee's royalty payments.
The following items are not included in Gross Sales: bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities, and the retail price of any coupons, gift certificates, and vouchers when they are redeemed. Therefore, a Dog Haus franchisee does not pay a royalty on these specific types of transactions, which benefits the franchisee by reducing their royalty obligations to Dog Haus.