What is a 'Marketing Coverage Area' for a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in the future, establish programs for co-operative marketing ("Cooperative Marketing Programs") to coordinate advertising, marketing efforts and programs, to serve as a conduit for the collection and expenditure of the contributed funds and to maximize the efficient use of local and/or regional marketing media. If we create a Cooperative Marketing Program for a defined coverage area (a "Marketing Coverage Area") in which your Franchised Restaurant is located, you (and, if we or an affiliate own Franchised Restaurant in the Marketing Coverage Area, then we and/or our affiliate), must become a subscriber and member of the Cooperative Marketing Program and must participate in the Cooperative Marketing Program in the manner we prescribe. The size and content of a Marketing Coverage Area will be binding upon you and all other similarly situated Dog Haus franchisees. Each participating Dog Haus franchisee will be entitled to one vote for each Franchised Restaurant located within the Marketing Coverage Area as we may determine. (Franchise Agreement, Section 10.3).
You and all other members of the Marketing Coverage Area whose Franchise Agreements require their participation in the Cooperative Marketing Program, will contribute to the Cooperative Marketing Program the amounts that are determined by us and 50% or more of the participating Franchised Restaurants in the Cooperative Marketing Program (at least .5% of Gross Revenue but not to exceed 2% of the Gross Revenue of
Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a Marketing Coverage Area is a defined area for cooperative marketing programs. Dog Haus may establish these programs to coordinate advertising and marketing efforts. If a Marketing Coverage Area is created where a franchisee's restaurant is located, the franchisee must participate in the Cooperative Marketing Program. The size and content of the Marketing Coverage Area are determined by Dog Haus and are binding on all franchisees within that area. Each participating Dog Haus franchisee gets one vote for each restaurant they have in the Marketing Coverage Area.
Franchisees within a Marketing Coverage Area must contribute to the Cooperative Marketing Program. The amount is determined by Dog Haus and at least 50% of the participating franchisees in the program. The contribution will be between .5% and 2% of the Gross Revenue of each participating restaurant. These funds are used for marketing and advertising within the Marketing Coverage Area.
This means that as a Dog Haus franchisee, you may be required to participate in a Cooperative Marketing Program if one is established for your area. This participation involves contributing a percentage of your gross revenue to a common fund, which is then used for coordinated marketing efforts. The specific percentage can vary but will fall between 0.5% and 2% of gross revenue. Franchisees have a say in how the funds are spent, with one vote per restaurant they own in the area, although Dog Haus ultimately administers the program and resolves disputes.