For a Dog Haus franchise, when are the initial fees and payments due if the franchisee is in Maryland?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 4.1 of the Franchise Agreement is amended to include the following: "Despite the payment provisions in this Section 4.1, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement and you begin to conduct business at the franchised location, at which time all initial fees and payments will become immediately due and payable."
In the event of any conflict between the terms of this Addendum and the terms of the Franchise Agreement, the terms of this Addendum shall prevail.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, for franchisees in Maryland, the standard payment schedules for initial fees are modified. Instead of paying upfront, Maryland franchisees benefit from deferred payment terms.
Specifically, all initial fees and payments due to Dog Haus are deferred until the first business day after Dog Haus has completed all its material initial obligations to the franchisee under the Franchise Agreement. This also requires that the franchisee has begun conducting business at the franchised location. At that point, all initial fees and payments become immediately due and payable.
This deferral is formalized through a Maryland Addendum to the Franchise Agreement. This addendum also stipulates that its terms supersede any conflicting terms in the standard Franchise Agreement, ensuring that Maryland franchisees receive the benefit of the delayed payment schedule. This protection is in place because the Maryland Franchise Registration and Disclosure Law prohibits franchisors from requiring prospective franchisees to assent to releases or waivers of liability as a condition of purchasing a franchise.