What is the maximum deposit that Dog Haus can require from a franchisee or Recommended Supplier before inspecting the Recommended Supplier's facilities?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
uct the Recommended Supplier intends to supply to Franchisee; (ii) faithfully comply with Franchisor's specifications for the Non-Proprietary Products and Services to be sold by the Recommended Supplier; (iii) sell any Non-Proprietary Products and Services bearing the Dog Haus Marks only to franchisees of Franchisor and only under a trademark license agreement with Franchisor; (iv) provide Franchisor, upon request, with duplicate purchase invoices issued to Franchisee for Franchisor's records and inspection purposes; (v) permit Franchisor's representatives to routinely hold meetings with the Recommended
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus may require a franchisee or a Recommended Supplier to reimburse them for reasonably anticipated costs when reviewing the Recommended Supplier's application. This includes all current and future reasonable costs and expenses, such as travel, living costs, and product testing.
Specifically, Dog Haus can request a deposit of up to $1,000 in advance before they inspect the Recommended Supplier's facilities. This deposit is intended to cover the expenses Dog Haus anticipates incurring during the inspection process.
This policy ensures that Dog Haus can adequately assess and maintain the standards of its supply chain, while also protecting its brand and reputation. For a prospective franchisee, this means understanding that if they propose a new supplier, they or the supplier may need to provide a deposit to cover inspection costs.