How must all payments to Dog Haus be made?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
her sums payable under the terms of this Agreement. Franchisee shall maintain a single bank account for all EFT payments and shall maintain such minimum balance in this account in the amount that Franchisor may reasonably specify from time to time in order to ensure that all payments due to Franchisor and its Affiliates can be paid in full when drawn from the account. Franchisee shall not alter or close this account except with Franchisor's prior written approval. Any failure by Franchisee to implement an EFT system in strict accordance with Franchisor's instructions shall constitute a material Default of this Agreement. All payments by Franchisee shall be made in US Dollars free and clear of any tax, deduction, offset or withholding of any kind. Franchisee shall register for and collect and report sales tax in compliance with all Applicable Laws. All taxes and penalties, presently or in the future levied on the payments due to Franchisor under this Agreement shall be fully borne by Franchisee.
- 4.7 Application of Funds.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, all payments from a franchisee to Dog Haus must be made in U.S. dollars, free and clear of any tax, deduction, offset, or withholding of any kind. This means that the franchisee is responsible for covering any taxes or penalties levied on payments to Dog Haus.
Furthermore, the FDD states that if a franchisee is delinquent in any payments to Dog Haus under the Franchise Agreement or any other agreement, Dog Haus has the right to apply any payments received from the franchisee to any outstanding obligation, regardless of any specific designation made by the franchisee. This gives Dog Haus significant control over how payments are allocated if a franchisee has multiple outstanding debts.
In addition, the franchisee is obligated to implement an Electronic Funds Transfer (EFT) system according to Dog Haus's instructions. Failure to do so constitutes a material default of the Franchise Agreement. The franchisee is not allowed to alter or close the EFT account without prior written approval from Dog Haus. This ensures that Dog Haus can reliably receive payments from the franchisee and maintain oversight of the payment process.