Can Dog Haus require a Dog Haus franchisee or a Recommended Supplier to reimburse Dog Haus for costs related to inspecting the Recommended Supplier's facilities?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
uct the Recommended Supplier intends to supply to Franchisee; (ii) faithfully comply with Franchisor's specifications for the Non-Proprietary Products and Services to be sold by the Recommended Supplier; (iii) sell any Non-Proprietary Products and Services bearing the Dog Haus Marks only to franchisees of Franchisor and only under a trademark license agreement with Franchisor; (iv) provide Franchisor, upon request, with duplicate purchase invoices issued to Franchisee for Franchisor's records and inspection purposes; (v) permit Franchisor's representatives to routinely hold meetings with the Recommended Supplier to ensure the Recommended Supplier's compliance with Franchisor's standards and specifications and (vi) otherwise comply with Franchisor's reasonable r
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus has the right to require either the franchisee or a Recommended Supplier to cover the costs associated with inspecting the Recommended Supplier's facilities. This includes all reasonably anticipated costs for reviewing the Recommended Supplier's application, as well as current and future expenses related to inspecting, re-inspecting, and auditing their facilities, equipment, and food products. These costs can also include travel and living expenses incurred during the inspection process.
Dog Haus can also charge for product testing costs paid to third parties. Furthermore, Dog Haus can request a deposit of up to $1,000 in advance before inspecting the Recommended Supplier's facilities. This deposit serves as a prepayment for the anticipated inspection-related expenses.
This policy allows Dog Haus to ensure that Recommended Suppliers meet their standards without incurring the full financial burden themselves. For a prospective franchisee, this means that if they recommend a supplier, they or the supplier may be responsible for covering the costs of inspection, which could add to the overall expenses of operating the franchise. It's also important to note that Dog Haus retains the right to revoke approval of a Recommended Supplier if they no longer meet the franchisor's criteria.