What is the Dog Haus renewal fee amount for each renewal term, as detailed in Exhibit A?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Term shall commence on the Effective Date and shall expire on the Expiration Date. Except as provided in Section 2.6, this Agreement is not renewable.
- 2.6 Additional Development Rights. If Area Developer satisfies the Minimum Development Obligation before the Expiration Date and desires to develop, open and operate additional Dog Haus Restaurants in the Development Area, Area Developer shall have the right to extend the Term of this Agreement for an additional five (5) years on the terms and conditions set forth in this Section 2.6. If Area Developer desires to extend the Term of this Agreement for an additional five (5) years, Area Developer shall, no later than one hundred eighty (180) days prior to the Expiration Date, notify Franchisor in writing (the "Additional Development Notice") that Area Developer desires to do so and provide Franchisor with a proposal for the development of additional Dog Haus Restaurants in the Development Area (the "Additional Development Obligation"), setting forth the number of additional Dog Haus Restaurants proposed to be opened by Area Developer, the proposed development fees and the proposed opening dates for each Dog Haus Restaurant during the extended term. Franchisor may, but has no obligation to, grant Area Developer the Additional Development Rights described in this Section 2.6 in its sole and absolute discretion.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus FDD, the Area Developer agreement has an initial term that commences on the effective date and expires on the expiration date. Except as provided in Section 2.6, the agreement is not renewable. However, if the Area Developer satisfies the Minimum Development Obligation before the Expiration Date and desires to develop, open and operate additional Dog Haus Restaurants in the Development Area, the Area Developer has the right to extend the Term of this Agreement for an additional five years.
To extend the term for an additional five years, the Area Developer must notify Dog Haus in writing no later than 180 days prior to the Expiration Date. This notice must include a proposal for the development of additional Dog Haus Restaurants in the Development Area, specifying the number of restaurants, proposed development fees, and opening dates for each restaurant during the extended term. Dog Haus has the sole discretion to grant these additional development rights.
The FDD excerpt does not specify a renewal fee amount. It only mentions that the proposal for extending the term should include 'proposed development fees' for the additional Dog Haus Restaurants. A prospective franchisee should ask the franchisor about the specific renewal fee and how it is determined.