For Dog Haus, when are all initial fees and payments due to the franchisor?
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 the 2025 Dog Haus Franchise Disclosure Document, the standard payment schedule for initial fees is modified under a specific condition. Typically, initial fees and payments are due upon signing the Franchise Agreement. However, if the franchisee is in Hawaii, Dog Haus defers all initial fees and payments.
Specifically, for franchisees in Hawaii, all initial fees and payments due to Dog Haus are deferred until the first business day after Dog Haus has completed all material initial obligations to the franchisee under the Franchise Agreement or Area Development Agreement. This also requires that the franchisee has begun conducting business at the first Dog Haus Restaurant. At that point, all initial fees and payments become immediately due and payable.
This deferral is imposed by the Hawaii Department of Commerce and Consumer Affairs due to Dog Haus's financial condition. This addendum ensures that franchisees in Hawaii are not required to pay initial fees until Dog Haus has fulfilled its initial obligations and the franchisee has commenced operations, providing a level of financial protection to the franchisee.