How are Dog Haus franchisees required to make payments to the franchisor?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay the Franchisee Conference Fee upon demand at least thirty (30) days before the date of the Annual Franchise Conference, whether or not Franchisee attends the Annual Franchise Conference.
- 8.3 Purchases from Franchisor or its Affiliates.
All Dog Haus Branded Products, Dog Haus Proprietary Products and Non-Proprietary Products and Services purchased from Franchisor or its Affiliates shall be purchased in accordance with the purchase order format issued from time to time by Franchisor or its Affiliates and at the prices and on delivery terms and other terms offered to similarly situated Dog Haus franchisees.
Franchisor, or its Affiliates, in its sole and absolute discretion, may establish the credit terms, if any, upon which it will accept Franchisee's orders, and may require Franchisee to pay for orders on a cash-in-advance or cash-ondelivery basis.
If Franchisee fails to provide Franchisor with such evidence of payment, or if Franchisee fails to spend the amount required by this Section 10.4, Franchisee shall immediately pay must pay the Marketing, Creative & Technology Fund the difference between the amount that Franchisee actually spent on the grand opening marketing campaign and the required Grand Opening Marketing Expenditure.
If Franchisee is
purchasing an existing Franchised Restaurant, Franchisee shall spend an amount equal to Franchisor's Then-Current required transfer marketing expenditure to conduct a promotional campaign for the Franchised Restaurant during the first three (3) months of operations following the take-over date of the Franchised Restaurant in accordance with Franchisor's Then-Current transfer marketing requirements.
Further, Franchisor may require Franchisee or the Recommended Supplier to reimburse Franchisor for all of Franchisor's reasonably anticipated costs in reviewing the application of the Recommended Supplier and all current and future reasonable costs and expenses, including travel and living costs, related to inspecting, re-inspecting and auditing the Recommended Suppliers' facilities, equipment, and food products, and all product testing costs paid by Franchisor to third parties and to pay Franchisor, in advance, a deposit of up to $1,000, before Franchisor inspects the Recommended Supplier's facilities.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, franchisees are obligated to make several payments to Dog Haus under specific conditions. Franchisees must pay a Franchisee Conference Fee at least 30 days before the annual conference, regardless of whether they attend. For purchases from Dog Haus or its affiliates, franchisees must adhere to the purchase order format and pricing terms set by Dog Haus. Dog Haus has the discretion to establish credit terms for these purchases, potentially requiring cash-in-advance or cash-on-delivery payments.
Franchisees are also responsible for various marketing expenditures. If a franchisee fails to provide evidence of spending the required amount on a grand opening marketing campaign, they must pay the difference to the Marketing, Creative & Technology Fund. Similarly, franchisees purchasing an existing restaurant must spend a specified amount on a promotional campaign during their first three months of operation. Dog Haus may also require franchisees to participate in national or regional promotional campaigns, which may involve purchasing promotional materials.
Furthermore, if Dog Haus reviews a supplier recommended by a franchisee, the franchisee may be required to reimburse Dog Haus for costs associated with the review, including inspections, audits, and product testing. Dog Haus may also require an advance deposit of up to $1,000 before inspecting the supplier's facilities. These payment obligations ensure that franchisees contribute to marketing efforts, maintain brand standards, and participate in system-wide initiatives, while also covering costs incurred by Dog Haus in overseeing supplier approvals and maintaining the integrity of the Dog Haus system.