What was the total amount of liabilities related to Dog Haus gift cards in 2024?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
ce as of December 31, 2024 and 2023 was $768,992 and $428,136, respectively.
| 2024 | 2023 | |
|---|---|---|
| Accounts payable | $ 242,856 | $ 60,238 |
| Charities payable | 116,696 | 34,892 |
| Gift cards |
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the company entered into an arrangement to sell pre-purchase credits to be used at participating restaurants. As of December 31, 2024, the total balance for these pre-purchased credits was $578,629. This amount is recorded on the balance sheet as a prepaid credit liability.
For a prospective Dog Haus franchisee, this means that the company has a significant amount of outstanding credit that customers have already paid for but not yet redeemed at restaurants. This liability represents a future obligation for Dog Haus to provide goods or services to customers who hold these credits.
It is important to note that this figure represents the total liability across all participating Dog Haus restaurants, not just individual franchise locations. Franchisees should understand how these prepaid credits are accounted for in their individual store financials and how they impact revenue recognition and reporting.