What is the maximum deposit Dog Haus can require before inspecting a 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, if a franchisee wants to use a 'Recommended Supplier' (a supplier not already approved by Dog Haus), Dog Haus may require the franchisee or the supplier to cover the costs of reviewing the supplier's application and inspecting their facilities. This includes travel, living costs, and product testing.
Specifically, Dog Haus can demand a deposit of up to $1,000 in advance before they inspect the Recommended Supplier's facilities. This deposit is intended to cover the anticipated costs of the inspection.
This policy ensures that Dog Haus maintains control over its supply chain and protects its brand standards. It also means that franchisees might face additional costs and delays if they choose to use unapproved suppliers, as they will need to front the money for Dog Haus to inspect and potentially approve the supplier. This is a fairly standard practice in franchising, as franchisors need to ensure consistent quality and protect their brand reputation.