Is a Dog Haus franchisee required to participate in promotional campaigns established by the franchisor?

According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are generally required to participate in promotional campaigns established by the franchisor. Specifically, Dog Haus has the right to establish and conduct promotional campaigns on a national or regional basis to promote particular products or marketing themes. Franchisees must participate in these campaigns under the terms and conditions set by Dog Haus. This participation may require franchisees to purchase point-of-sale advertising material, posters, flyers, product displays, and other promotional materials.

In addition to these general promotional campaigns, Dog Haus franchisees must also conduct grand opening events and promotions as required and directed by Dog Haus, as specified in the manuals. If a franchisee is purchasing an existing franchised restaurant, they must spend an amount equal to Dog Haus's then-current required transfer marketing expenditure to conduct a promotional campaign for the franchised restaurant during the first three months of operations following the takeover date, in accordance with Dog Haus's then-current transfer marketing requirements.

Dog Haus may also establish cooperative marketing programs to coordinate marketing efforts. If a Cooperative Marketing Program is created for the marketing coverage area in which the franchised restaurant is located, the franchisee must become a subscriber and member of the Cooperative Marketing Program and participate in the program as prescribed by Dog Haus. Franchisees are required to contribute to the Cooperative Marketing Program an amount determined by Dog Haus and at least 50% of the participating Dog Haus restaurants in the Cooperative Marketing Program, with contributions ranging from at least 0.5% to a maximum of 2% of the Gross Sales of each participating franchised restaurant. These contributions can be credited towards the Local Store Marketing Expenditure required by the franchise agreement.

These requirements ensure that all Dog Haus locations participate in marketing efforts to maintain brand consistency and drive sales. However, franchisees should be aware of the potential costs associated with these campaigns, including purchasing promotional materials and contributing to cooperative programs. Franchisees should also note that Dog Haus has the authority to determine the policies and usage of funds within the Cooperative Marketing Program, and disputes will be resolved by Dog Haus, whose decision is final.