What was the increase in franchise fees received by Dog Haus in 2024?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
provides a practical expedient to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, that permits franchisors that are not public entities to account for preopening services provided to a franchisee as distinct from the franchise license if the services are consistent with those included in a predefined list within ASU 2021-02. Additionally, ASU 2021-02 provides an accounting policy election to recognize pre-opening services as a single performance obligation, which the Company has elected.
Notes to Financial Statements December 31, 2024, 2023 and 2022
Franchise Fees, Royalty Revenue and Development Fees: Franchise fees are nonrefundable and are generally due upon signing of t
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Dog Haus does not explicitly state the increase in franchise fees received in 2024. However, it does provide figures for marketing fee income for the years 2022, 2023, and 2024.
Specifically, the marketing fee income for 2024 was $1,215,062, for 2023 it was $1,213,271, and for 2022 it was $1,375,340. These fees are collected from franchisees at a rate of 2% of net sales and are designated for specific advertising and promotional activities for Dog Haus restaurants. It's also noted that as of December 31, 2024, Dog Haus had spent $1,129,326 in marketing expenses exceeding the collected fees.
While the document details marketing fee income, it does not provide equivalent figures for franchise fee income. To determine the increase in franchise fees for 2024, a prospective franchisee should directly ask Dog Haus for this specific financial information. Understanding the trend in franchise fee income is crucial for assessing the financial health and growth trajectory of the franchise system.