Is Dog Haus obligated to make expenditures in a franchisee's Protected Area equivalent to their contribution to the Marketing, Creative & Technology Fund?

According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus is not obligated to ensure that the expenditures made from the Marketing, Creative & Technology Fund in a franchisee's protected area are equivalent or proportionate to the franchisee's contribution to the fund. Nor is Dog Haus obligated to ensure that any particular franchisee benefits directly or pro rata from the marketing or promotion conducted using the Marketing, Creative & Technology Fund.

This means that while franchisees are required to contribute to the Marketing, Creative & Technology Fund, Dog Haus has sole discretion over how the funds are spent. Dog Haus determines the creative concepts, materials, endorsements, geographic markets, and media placement. A franchisee's contribution does not guarantee that marketing efforts will be focused on their specific location or benefit them directly.

This arrangement is common in franchising, where marketing funds are often used for broader brand-building activities that may not have an immediate or measurable impact on each individual franchise. However, it's important for prospective franchisees to understand that their contributions to the fund may not directly translate into local marketing support. Franchisees for Dog Haus should inquire about the typical allocation of the Marketing, Creative & Technology Fund and the criteria used to determine marketing priorities.