For a Dog Haus franchise in North Dakota, when are the initial fees and payments due?
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 Restaurant, 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 franchises in North Dakota. Instead of paying initial fees upon signing the Franchise Agreement, franchisees in North Dakota will have their initial fees and payments deferred.
Specifically, the North Dakota Addendum states that all initial fees and payments due to Dog Haus will be deferred until the first business day following the date that Dog Haus has completed all of its material initial obligations to the franchisee under the Franchise Agreement. This also requires that the franchisee has begun conducting business at the Franchised Restaurant.
Once both conditions are met—Dog Haus has fulfilled its initial obligations and the franchisee has started operations—all initial fees and payments become immediately due and payable. This deferral is specific to North Dakota and aims to comply with North Dakota franchise law, offering franchisees in that state a delayed payment schedule compared to the standard agreement.