What is the significance of December 31st for Dog Haus's financial reporting?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
l Gross Sales for the 3 franchised Dog Haus Remote Kitchens that were open for more than one year on December 31, 2022 was $4,104,986. Tables 3, 6, and 9 include actual historical information for all 11 of these franchised Dog Haus Fast Casual Restaurants, all 28 of these franchised Dog Haus Biergartens, and all 3 of the franchised Dog Haus Remote Kitchens provided to us by our franchisees.
NOTE 10:
"Average" means the aggregate Gross Sales divided by the total number of franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens that were open for more than one year on December 31, 2024; the aggregate Gross Sales divided by the total number of franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens that were open for more than one year on December 31, 2023; the aggregate Gross Sales divided by the total number of franchised Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens that were open for more than one year on December 31, 2022.
NOTE 11:
The Average Gross Sales for the 12 franchised Dog Haus Fast Casual Restaurants that were open for more than one year on December 31, 2024 was $1,447,569 ($17,370,823divided by 12 = $1,447,569). The Average Gross Sales for the 27 franchised Dog Haus Biergartens that were open for more than one year on December 31, 2024 was $1,846,747 ($49,862,175 divided by 27 = $1,846,747). The Average Gross Sales for the 4 franchised Dog Haus Remote Kitchens that were open for more than one year on December 31, 2024 was $1,297,974 ($5,191,896 divided by 4 = $5,191,896). Tables 1, 4, and 7 include actual historical information for all 12 of these franchised Dog Haus Fast Casual Restaurants, all 27 of these franchised Dog Haus Biergartens, and all 4 of the franchised Dog Haus Remote Kitchens provided to us by our franchisees.
The Average Gross Sales for the 11 franchised Dog Haus Fast Casual Restaurants that were open for more than one year on December 31, 2023 was $1,370,184 ($15,072,022 divided by 11 = $1,370,184). The Average Gross Sales for the 27 franchised Dog Haus Biergartens that were open for more than one year on December 31, 2023 was $1,664,456 ($44,940,302 divided by 27 = $1,664,456). The Average Gross Sales for the 4 franchised Dog Haus Remote Kitchens that were open for more than one year on December 31, 2023 was $1,116,665 ($4,466,661 divided by 4 = $1,116,665). Tables 2, 5, and 8 include actual historical information for all 11 of these franchised Dog Haus Fast Casual Restaurants, all 27 of these franchised Dog Haus Biergartens, and all 4 of the franchised Dog Haus Remote Kitchens provided to us by our franchisees.
The Average Gross Sales for the 11 franchised Dog Haus Fast Casual Restaurants that were open for more than one year on December 31, 2022 was $1,268,710 ($13,955,815 divided by 11 = $1,268,710). The Average Gross Sales for the 28 franchised Dog Haus Biergartens that were open for more than one year on December 31, 2022 was $1,779,806 ($49,834,566 divided by 28 = $1,779,806). The Average Gross Sales for the 3 franchised Dog Haus Remote Kitchens that were open for more than one year on December 31, 2022 was $1,368,329 ($4,104,986 divided by 3 = $1,368,329).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, December 31st is a key date for assessing financial performance. The FDD uses December 31st as the cutoff date to determine which franchise locations have been open for at least one year. Only those locations open for more than one year as of December 31st are included when calculating average gross sales figures. This applies to Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens.
For example, the average gross sales for Dog Haus Fast Casual Restaurants, Dog Haus Biergartens, and Dog Haus Remote Kitchens open for more than one year as of December 31, 2024, were calculated to be $1,447,569, $1,846,747, and $1,297,974, respectively. Similarly, the average gross sales for the same types of Dog Haus locations open for more than one year as of December 31, 2023, were $1,370,184, $1,664,456, and $1,116,665, respectively. The FDD also provides average gross sales figures as of December 31, 2022.
This date is important for prospective franchisees because it sets the criteria for the financial performance data presented in Item 19. By only including locations open for more than a year, Dog Haus aims to provide a more stable and representative picture of potential revenues. However, franchisees should also consider factors such as location, market conditions, and individual management skills, which can significantly impact actual performance. The FDD also notes instances where certain locations were temporarily closed during parts of the year, which could affect their inclusion or exclusion from the financial performance data.
In summary, December 31st serves as an annual benchmark for Dog Haus to evaluate the financial performance of its franchise locations and to provide potential franchisees with relevant data to assess the potential of investing in a Dog Haus franchise. Franchisees should note that the financial performance representations are based on historical data and may not be indicative of future results.