What is the required spending for promotional events for a Dog Haus Fast Casual Restaurant franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| .41% | |
|---|---|
| Social & Digital | 28.78% |
| Marketing | |
| Public Relations | 10.09% |
| Creative | 18.17% |
| Technology | 14.55% |
| Total | 100% |
Local Marketing Expenditures - Dog Haus Fast Casual Restaurant/Dog Haus Biergarten Restaurant
As of December 31, 2024, we do not currently require you to make Local Marketing Expenditures, but we may do so in the future upon 90 days written notice to you. If and when we do so, such expenditures will be in addition to any Marketing, Creative & Technology Fees you are required to pay us. If and when we require you to make Local Marketing Expenditures and you are a Dog Haus Fast Casual or a Dog Haus Biergarten franchisee, you must spend an amount equal to 1% of the Gross Sales or $3,750 per calendar quarter, whichever is greater, of your Franchised Restaurant on local promotion and marketing (the "Local Marketing Expenditure"). We have the right to adjust the amount of the Local Store Marketing Expenditures at any time during the term of your Franchise Agreement on 90 days' prior written notice to you, not to exceed 3% of Gross Sales. All local marketing must meet our specifications in our Manuals including, two-a-days, grassroots marketing, school fundraisers, dine out fundraisers, milestones, school ambassadors, marketing cooperative, loyalty programs, delivery and catering. You must submit to us before use, samples of all local marketing materials, and descriptions of all local marketing programs, not prepared or previously approved by us, for our approval. You may not use any marketing material or program or use the Dog Haus logo or Dog Haus Marks in any public manner without our prior written approval. On the 10th day of each month, you must provide us with a report summarizing your Local Marketing Expenditures during the previous month. Within 15 days of the end of each calendar quarter, you must provide us with copies of all invoices, statements, canceled checks or other forms of payment that you issued during the preceding calendar quarter that evidence your expenditure and payment of 1% of your Gross Sales or $3,750 per calendar quarter, whichever is greater, on local marketing. If you fail to do so, or if you fail to spend at least 1% of your Gross Sales or $3,750 per calendar quarter, whichever is greater, on local marketing, at the end of each calendar quarter you
must pay the Marketing, Creative & Technology Fund the difference between the amount that you actually spent on local marketing and the greater of 1% of your Gross Sales or $3,750 per calendar quarter. (Franchise Agreement, Section 10.2).
Remote Kitchen Local Marketing Expenditure.
As of December 31, 2024, we do not currently require you to make Remote Kitchen Local Marketing Expenditures, but we may do so in the future upon 90 days written notice to you. If and when we do so, such expenditures will be in addition to the Marketing, Creative & Technology Fees. If and when we require you to make Remote Kitchen Local Marketing Expenditures and you are a Remote Kitchen franchisee, you must spend an amount equal to 5% of the Gross Sales of the Remote Kitchen, or $6,000 per calendar quarter, whichever is greater, on local promotion and marketing (the "Remote Kitchen Marketing Expenditure"). (Remote Kitchen Addendum to Franchise Agreement, Section 5.1).
All Remote Kitchen marketing must meet our specifications in our Manuals. Marketing for your Remote Kitchen will be primarily through traditional print, social media and through third party delivery providers.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees may be required to spend on local promotion and marketing. As of December 31, 2024, Dog Haus does not currently require franchisees to make local marketing expenditures, but may do so in the future with 90 days written notice. If and when required, franchisees must spend an amount equal to 1% of gross sales or $3,750 per calendar quarter, whichever is greater, on local promotion and marketing. Dog Haus has the right to adjust the amount of the local store marketing expenditures at any time during the term of the Franchise Agreement with 90 days' prior written notice, not to exceed 3% of Gross Sales.
The FDD specifies that all local marketing must meet Dog Haus's specifications in their manuals, including two-a-days, grassroots marketing, school fundraisers, dine out fundraisers, milestones, school ambassadors, marketing cooperative, loyalty programs, delivery and catering. Franchisees must submit samples of all local marketing materials and descriptions of all local marketing programs not prepared or previously approved by Dog Haus for their approval before use. Franchisees may not use any marketing material or program or use the Dog Haus logo or Dog Haus Marks in any public manner without prior written approval.
Furthermore, Dog Haus may conduct promotional campaigns on a national or regional basis to promote products or marketing themes, and franchisees must participate in all promotional campaigns established for the region in which their Franchised Restaurant is located. If a Dog Haus restaurant offers sub-branded products, the franchisee must spend at least $5,000 marketing each new sub-branded product within the first 60 days of its launch, as directed by Dog Haus. For a remote kitchen, the franchisee must spend between $10,000 to $15,000 for promotional events 14 days before the scheduled opening and continuing for 30 days after opening for business.