What merchant services provider is a Dog Haus franchisee required to use?

According to Dog Haus's 2025 Franchise Disclosure Document, franchisees must use Toast, Inc. as their designated merchant services provider. Franchisees are also obligated to pay Toast monthly processing fees equivalent to 0.4% of their gross volume. Additional fees for ongoing processing services may also apply, and these will vary depending on the transaction volume processed by the Dog Haus location.

This requirement ensures that all Dog Haus locations use a standardized system for processing payments, which can help with brand consistency and data tracking. However, it also means that franchisees cannot shop around for potentially lower processing fees from other providers. The 0.4% processing fee, while seemingly small, can add up significantly depending on the restaurant's sales volume. Franchisees need to factor this ongoing cost into their financial projections.

Dog Haus retains the right to change the approved supplier of the POS system, including the merchant services provider, at any time, providing 90 days' notice. This clause gives Dog Haus flexibility but also introduces some uncertainty for franchisees, as they may be required to switch systems and potentially incur new training or setup costs if a change occurs. It is important for prospective franchisees to understand the terms of the agreement with Toast, Inc. and any potential termination clauses or costs associated with switching providers.

In summary, while using a designated merchant services provider like Toast, Inc. offers benefits such as system integration and brand uniformity, franchisees must carefully consider the associated costs and the potential for changes in providers during the franchise term. Understanding these factors is crucial for making an informed investment decision.