How do the restrictions on suppliers for Dog Haus in Item 8 affect the initial franchise fee in Item 5?

According to Dog Haus's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on approved suppliers, while Item 5 details the initial fees. The FDD states that approximately 70-75% of start-up expenses and 70-80% of ongoing expenses will be for purchases from Dog Haus Approved Suppliers or according to their specifications. However, the document does not explicitly state how these supplier restrictions directly affect the initial franchise fee.

The initial franchise fee for a single Dog Haus Fast Casual Restaurant, Biergarten Restaurant, or Remote Kitchen is $40,000, payable in full upon signing the Franchise Agreement. For franchisees participating in the Area Development Program, the development fee is $20,000 for each restaurant beyond the first, with an initial franchise fee of $40,000 required when signing the Area Development Agreement for the first location. Subsequent locations under the Area Development Agreement incur an initial franchise fee of $20,000 each.

While the FDD specifies that franchisees must purchase certain items from Dog Haus's affiliate, Pyramid Powder, before opening, these purchases are separate from the initial franchise fee. The estimated cost for these items ranges from $8,525 to $36,000 for a Fast Casual Restaurant and $30,000 to $65,000 for a Biergarten Restaurant. These purchases are not required for a Remote Kitchen. The FDD does not provide information on how the restrictions on suppliers directly influence or alter the initial franchise fee itself.

Therefore, while the FDD details supplier restrictions and initial fees, it does not explain a direct relationship between them. A prospective franchisee should seek clarification from Dog Haus regarding any potential impact of supplier restrictions on the initial franchise fee or other associated costs.