For Dog Haus franchises, does 'Gross Sales' include revenue from wholesale sales?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee3 (Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant) | 6% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
| Royalty Fee3 (Dog Haus Remote Kitchen) (Remote Kitchen Addendum) | 4% of "Gross Sales" | Tuesday of each week on the Gross Sales of your Franchised Restaurant during the immediately preceding week. | "Gross Sales" includes all revenue from retail and wholesale sales of goods, merchandise, services or products from your operations. Gross Sales do not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities or the retail price of any coupons, gift certificates and vouchers when they are redeemed. |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, "Gross Sales" for both Dog Haus Fast Casual Restaurants & Biergarten Restaurants and Dog Haus Remote Kitchens includes revenue from wholesale sales. Specifically, Gross Sales encompasses all revenue from retail and wholesale sales of goods, merchandise, services, or products from the franchise's operations. However, Gross Sales does not include bona fide refunds paid to customers, sales or use taxes actually paid to governmental authorities, or the retail price of any coupons, gift certificates, and vouchers when they are redeemed.
This definition of Gross Sales is important because it is the base upon which Dog Haus calculates royalty fees and certain other fees. For Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant franchises, the royalty fee is 6% of Gross Sales, while for Dog Haus Remote Kitchen franchises, the royalty fee is 4% of Gross Sales. Additionally, the Marketing, Creative, & Technology Fee for Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant franchises is currently 2% of Gross Sales, and for Remote Kitchen franchises, it is currently 0.5% of Gross Sales.
For a prospective franchisee, this means that all revenue generated from both retail and wholesale activities will be subject to these percentage-based fees. It is crucial to understand this comprehensive definition of Gross Sales to accurately project revenue and calculate the associated fees payable to Dog Haus. Franchisees should factor in all potential revenue streams, including wholesale, when assessing the financial viability of the franchise.