How does Dog Haus require franchisees to pay fees, and are these fees refundable?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Unless otherwise noted, all fees are uniformly imposed by and payable to us by electronic funds transfer or other automatic payment mechanism we designate and are non-refundable. (Franchise Agreement, Section 4.6). None of these fees are imposed by a cooperative.
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are generally required to pay fees via electronic funds transfer or another automatic payment mechanism that Dog Haus designates. Unless otherwise specified, these fees are typically non-refundable. This blanket statement applies to most fees outlined in Item 6 of the FDD.
For example, franchisees must pay a royalty fee that is 6% of gross sales for Dog Haus Fast Casual and Biergarten restaurants, or 4% of gross sales for Remote Kitchen locations. These royalty fees are due every Tuesday for the preceding week's sales. Franchisees also pay a Marketing, Creative & Technology Fee. For Fast Casual and Biergarten locations, this fee is currently 2% of gross sales, while for Remote Kitchens, it is 0.5% of gross sales, both also due weekly.
Other fees include a Lease Negotiation Fee of $1,500, payable on demand if the franchisee requests consent to modify lease provisions. A Private Offering Fee of $10,000 (or more, depending on costs) is due before any offering of securities. Administrative Assessments range from $100 to $300 for reporting violations, and are due on demand. An Audit fee, estimated between $1,000 and $5,000 plus interest, is charged if an audit reveals understated gross sales of 3% or more. An Interim Management Fee of $500 per day plus costs is charged if Dog Haus manages a defaulting franchise. Sanitation and Food Safety Audits are charged at the actual cost of inspection, payable on demand.
Prospective franchisees should carefully review the specific terms and conditions related to each fee, as outlined in the Franchise Agreement, to fully understand their financial obligations and whether any exceptions to the non-refundable policy exist. Understanding the payment methods and refund policies for each fee is crucial for managing the financial aspects of operating a Dog Haus franchise.