When are all initial fees and payments to Dog Haus due from the franchisee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Item 5 of the Franchise Disclosure Document is amended as follows:
- "Despite the payment provisions in this Item 5, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement or Area Development Agreement and you begin to conduct business at the first Dog Haus Restaurant, at which time all initial fees and payments will become immediately due and payable. The Hawaii Department of Commerce and Consumer Affairs has imposed the fee deferral requirement because of our financial condition."
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the standard payment schedule for initial fees is modified for franchisees. Typically, these fees would be due upon signing the Franchise Agreement. However, Dog Haus defers all initial fees and payments.
The deferred payment schedule stipulates that all initial fees and payments are due on the first business day after Dog Haus has completed all its material initial obligations to the franchisee under the Franchise Agreement or Area Development Agreement. This deferred payment is also contingent upon the franchisee beginning to conduct business at the first Dog Haus Restaurant. Once these conditions are met, all initial fees and payments become immediately due and payable.
This deferral is specifically imposed by the Hawaii Department of Commerce and Consumer Affairs due to Dog Haus's financial condition. This arrangement provides a benefit to the franchisee by allowing them to delay payment until Dog Haus has fulfilled its initial obligations and the restaurant is operational, reducing the upfront financial burden and risk.