From whom must a Dog Haus franchisee purchase Dog Haus Proprietary Products?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must serve all and only the products we authorize ("Dog Haus Authorized Products"). We may provide you with our proprietary hot dogs, sausages, hamburgers, chicken and plant-based food products, sauces, marinades, branded products and proprietary beverages, food products, packaging and products that are produced or manufactured according to our trade secrets, proprietary recipes, specifications and/or formulas
(collectively, the "Dog Haus Proprietary Products"). You must buy Dog Haus Proprietary Products only from us, our affiliates or our Dog Haus Approved Suppliers. Currently, we, our affiliates and our Dog Haus Approved Suppliers are the only approved suppliers of Dog Haus Proprietary Products. We will not be obligated to reveal our trade secrets or the recipes, specifications and/or formulas of Dog Haus Proprietary Products to you or any third party. You must purchase, use, and maintain in stock a sufficient amount of Dog Haus Authorized Products and Dog Haus Proprietary Products to operate your Franchised Restaurant. During the fiscal year ended December 31, 2024, we did not derive any revenue from required franchisee purchases or leases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees must purchase Dog Haus Proprietary Products only from Dog Haus, its affiliates, or Dog Haus Approved Suppliers. These proprietary products include authorized hot dogs, sausages, hamburgers, chicken and plant-based food products, sauces, marinades, branded products, proprietary beverages, food products, packaging, and products produced or manufactured according to Dog Haus's trade secrets, proprietary recipes, specifications, and/or formulas. The FDD specifies that Dog Haus, its affiliates, and Dog Haus Approved Suppliers are currently the only approved suppliers for these proprietary products. Dog Haus is not obligated to reveal its trade secrets, recipes, specifications, or formulas to franchisees or any third party.
This requirement ensures consistency and quality across all Dog Haus locations, as franchisees are restricted to using only approved sources for key ingredients and branded items. This control helps maintain the brand's standards and reputation. Franchisees must also maintain a sufficient stock of both Dog Haus Authorized Products and Dog Haus Proprietary Products to effectively operate their franchised restaurant.
For prospective franchisees, this means a significant portion of their ongoing expenses, estimated between 70-80%, will be directed towards purchases from Dog Haus Approved Suppliers or according to Dog Haus's specifications. While this ensures product quality and consistency, it also limits the franchisee's flexibility in sourcing products and potentially negotiating better prices with alternative suppliers. Franchisees need to factor these ongoing purchase requirements into their financial projections and business planning.
It is important to note that if a franchisee wishes to use a supplier not already approved by Dog Haus, they must seek approval from Dog Haus. This process involves providing detailed information about the proposed supplier and potentially submitting product samples for testing. Dog Haus may also conduct inspections of the supplier's facilities to ensure they meet the required standards. This approval process adds an extra layer of administrative work and potential costs for the franchisee.