For a Dog Haus franchise in Maryland, when are all initial fees and payments due to the franchisor?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 5 of the Franchise Disclosure Document is amended as follows:
"Despite the payment provisions in this Item 5, 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."
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the standard payment schedule for initial fees is modified for franchisees in Maryland. Instead of paying upfront, Maryland franchisees benefit from a deferral of these fees.
Specifically, all initial fees and payments due to Dog Haus are deferred until a specific milestone is reached. This milestone is the first business day following the date when Dog Haus has completed all of its material initial obligations to the franchisee under the Franchise Agreement. Additionally, the franchisee must have begun conducting business at the franchised location.
Once both of these conditions are met, all initial fees and payments become immediately due and payable to Dog Haus. This deferral is implemented through an addendum to the Franchise Agreement specifically for Maryland franchisees, superseding any conflicting payment provisions in the standard agreement. This ensures compliance with Maryland franchise law and provides a degree of financial flexibility for new franchisees in the state.