How often can Dog Haus require a franchisee to replace the POS System or Tech Stack?

According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are required to purchase, use, and maintain a computerized point of sale cash collection system (POS System) and a computer system (Tech Stack). Dog Haus can mandate updates, upgrades, or replacements to the POS System or Tech Stack, including both hardware and software components. However, Dog Haus states that franchisees will not be required to replace the POS System or Tech Stack more often than once every 2 years.

This requirement ensures that all Dog Haus locations operate with current and compatible technology, allowing for efficient data management, online order processing, and gift card acceptance across the franchise system. The POS System and Tech Stack must be capable of accessing the Internet for software implementation and data transmission. Dog Haus retains independent access to the data generated and stored within these systems, enabling them to monitor sales, usage, and other operational data.

For a Fast Casual or Biergarten franchisee, the initial cost for the POS System ranges from $8,300 to $12,000, while for a Remote Kitchen franchisee, the cost is approximately $800 to $1,500. Monthly maintenance costs for the POS System range from $254 to $500. These costs, along with the potential for mandatory replacements every two years, represent a significant technology investment for franchisees. Franchisees must also use Dog Haus's designated merchant services provider, currently Toast, Inc., and pay monthly processing fees of 0.4% of gross volume, in addition to other processing fees.

Dog Haus also has the right to change their approved supplier of the POS System at any time, providing 90 days' notice. This means that franchisees may be required to switch to a new POS system provider, potentially incurring additional costs for new hardware, software, or training. The ability for Dog Haus to access franchisee data and mandate system upgrades is typical in franchising, allowing the franchisor to maintain brand standards and system-wide efficiency. However, franchisees should carefully consider the costs associated with technology upgrades and replacements when evaluating the Dog Haus franchise opportunity.