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What are all the fees a Dog Haus franchisee might incur, combining information from Item 5 and Item 6?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

You must pay us an initial franchise fee (the "Initial Franchise Fee") as follows:

Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen

The Initial Franchise Fee is $40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (Exhibit A). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (Exhibit A) and Remote Kitchen Addendum to your Franchise Agreement (Exhibit C).

Area Development Program

You must pay us a development fee (the "Development Fee") as follows:

Fast Casual/Biergarten Restaurant

The Development Fee is $20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (Exhibit B) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of $40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial Franchise Fee of $20,000 for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant.

All fees discussed in this Item 5 are fully earned by us when paid and are not refundable under any circumstances, even if you, as an Area Developer, fail to open any Dog Haus Fast Casual Restaurants, Dog Haus Biergarten Restaurants or Dog Haus Remote Kitchens.

If you choose to use a different architect, he or she must be licensed and approved by us and you must pay a $1,500 plan review fee directly to our architect.

Royalty Fees” means the fees that Franchisee shall pay Franchisor on Tuesday of each week during the Term equal to six percent (6%) of the Gross Sales of the Franchised Restaurant during the immediately preceding week.

  • Sub-Branded Products Marketing Expenditure” means the $5,000 Franchisee shall spend to market each new Sub-Branded Product offered from the Franchised Restaurant.

  • Transfer Fee” means the $17,500 fee that Franchisee must pay Franchisor as a condition precedent to an Assignment of this Agreement.

If Franchisee fails to secure the new Franchised Location within twelve (12) months of the date of Franchisor's approval of the new Franchised Location, Franchisor shall have the right to estimate and bill Franchisee for Royalty Fees for the time period following the expiration of the twelve (12) month period based upon the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding

Franchisee shall pay Franchisor its Then-Current Additional Pre-Opening Initial Training Fee for each additional trainee.

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
Leasehold/Construction4 $125,000 $180,000 As Arranged As Incurred Dog Haus Approved Suppliers
FURNITURE, FIXTURES,
EQUIPMENT & SIGNAGE
Exterior Signage, Artwork; Graphics $5,000 $22,000 AsArranged As Incurred Dog Haus Approved
& Interior Signage Suppliers
POS System and Software;;Printers and Related Hardware and Software; Sound System; Televisions 5 $9,412 $15,300 As Arranged As Incurred Dog Haus Approved Suppliers
Equipment/Smallwares; Hood $50,000 $85,000 As Arranged As Incurred Dog Haus Approved Suppliers
OTHER
DesignatedFurniture;Trash Can Caddies & Trash Cans; Menu Boards & Ad Boxes; Drink Station; Railing $8,525 $36,000 As Arranged Before Opening Pyramid Powder
OpeningInventory $10,000 $15,000 As Arranged Before Opening Dog Haus Approved Suppliers
Beer & Wine/Liquor License Costs6 $1,500 $7,000 Lump Sum Before Opening Governmental Agencies and Professional Services

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, franchisees can incur several fees. The initial franchise fee for a single fast-casual, Biergarten, or remote kitchen restaurant is $40,000. For area development agreements, the development fee is $20,000 for each restaurant after the first, with an initial franchise fee of $40,000 for the first location. These fees are non-refundable. Franchisees also pay a royalty fee of 6% of gross sales each week.

Additional fees may include a $1,500 plan review fee if the franchisee uses an architect not recommended by Dog Haus. There is also a Transfer Fee of $17,500 for transferring the Franchise Agreement. Franchisees must spend $5,000 to market each new Sub-Branded Product offered from the Franchised Restaurant. If a franchisee fails to secure a new franchised location within 12 months of approval, Dog Haus can estimate and bill royalty fees based on past performance plus an additional 10%. Franchisees also pay a Then-Current Additional Pre-Opening Initial Training Fee for each additional trainee beyond the initial two.

Item 7 outlines further initial costs, such as utility deposits ($5,000 to $10,000), pre-construction costs ($45,000 to $85,000), leasehold/construction ($125,000 to $180,000), exterior and interior signage ($5,000 to $22,000), POS systems ($9,412 to $15,300), equipment/small wares ($50,000 to $85,000), designated furniture ($8,525 to $36,000), opening inventory ($10,000 to $15,000), and beer and wine/liquor license costs ($1,500 to $7,000).

Prospective franchisees should carefully consider these fees and understand the conditions under which they are applied. Understanding the 'Then-Current' fees is also crucial, as these can change over time. It is important to note that Dog Haus does not typically offer financing for the initial franchise fee or development fee, though they may consider it in unique situations.

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.