What expenses of Dog Haus can the Marketing, Creative & Technology Fund defray?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
less it is established that a third party claim asserted against Franchisee is based directly upon Franchisee's misuse of the Dog Haus Marks or the Dog Haus System, Franchisor agrees to defend Franchisee against the third party claim and indemnify Franchisee for any losses resulting therefore, provided Franchisee has notified Franchisor as soon as practical after learning of the claim and fully cooperates in the defense of the action. Because Franchisor will defend the third party claim, Franchisee is not entitled to be reimbursed for legal or other professional fees or costs paid to independent legal counsel or others in connection with the matter.
10. MARKETING.
To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same:
- 10.1 Marketing, Creative & Technology Fund. The Marketing, Creative & Technology Fund shall be administered by Franchisor and shall be used to meet the costs of conducting marketing and promotional activities. Franchisor retains sole discretion over all marketing and public relations programs and activities financed by the Marketing, Creative & Technology Fund, including the creative concepts, materials and endorsements used and the geographic market, media placement and allocation.
- 10.1.1 The Marketing, Creative & Technology Fund may be used to pay the costs of preparing and producing associated materials and programs as Franchisor determines, including video, audio and written marketing materials employing marketing agencies, sponsorship of sporting, charitable or similar events, administering regional and multi-regional marketing programs including purchasing direct mail and other media marketing, and employing marketing agencies to assist with marketing efforts, supporting public relations, market research and other marketing and promotional activities, campaigns, test marketing, marketing surveys, public relations activities, website design and development/operation for portal, Internet, Intranet and URL services, social media, technology programs, electronic application design and development, and for 800 or similar numbers. All expenditures are at the sole discretion of Franchisor. Franchisor may spend in any year more or less than the total contributions to the Marketing, Creative & Technology Fund in that year.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Marketing, Creative & Technology Fund is used to cover the costs of marketing and promotional activities. Dog Haus has sole discretion over these programs, including creative concepts, materials, endorsements, market selection, and media placement. The fund can be used for preparing and producing marketing materials, including video, audio, and written content, and for employing marketing agencies.
Specifically, the fund may cover expenses related to marketing agencies, sponsoring events, administering regional and multi-regional marketing programs (including direct mail and media purchasing), public relations, market research, and other promotional activities. It also covers campaigns, test marketing, marketing surveys, public relations, website design and operation, social media, technology programs, and electronic application development, as well as 800 numbers. Dog Haus may spend more or less than the total contributions in any given year and can borrow or invest on behalf of the fund.
Dog Haus will provide an annual accounting of the Marketing, Creative & Technology Fund to franchisees, detailing the total amount collected and spent during the previous year, categorized by general expense type. This report is examined as part of the overall annual audit of Dog Haus's books, but is not separately audited. The franchisor can use the fund for reasonable administrative and marketing wages, costs, and overhead related to administering the fund and marketing programs for franchisees, but otherwise cannot use the fund to defray its own expenses. Franchisees should note that Dog Haus does not guarantee that expenditures will be equivalent or proportionate to their contributions or that they will directly benefit from the fund.