What were the total Dog Haus franchise and development fees in 2022?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
provides a practical expedient to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, that permits franchisors that are not public entities to account for preopening services provided to a franchisee as distinct from the franchise license if the services are consistent with those included in a predefined list within ASU 2021-02. Additionally, ASU 2021-02 provides an accounting policy election to recognize pre-opening services as a single performance obligation, which the Company has elected.
Notes to Financial Statements December 31, 2024, 2023 and 2022
Franchise Fees, Royalty Revenue and Development Fees: Franchise fees are nonrefundable and are generally due upon signing of t
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the marketing fee income for the year ended December 31, 2022, was $1,375,340. This income is derived from a 2% of net sales fee that Dog Haus collects from its franchisees, which is earmarked for specific advertising and promotional activities related to Dog Haus restaurants. These marketing fees are reported as gross income on the company's statements of operations.
This indicates the scale of marketing activity and the financial commitment of franchisees to brand promotion. Franchisees should understand how these marketing funds are utilized and the impact of marketing initiatives on their individual restaurant performance. It's also worth noting that the marketing fees are specifically designated for advertising purposes, ensuring that these funds are reinvested in promoting the Dog Haus brand and supporting franchisee sales.
It is important to note that this figure only represents the marketing fee income and not the initial franchise or development fees. The FDD does not provide the combined total of franchise and development fees for 2022. A prospective franchisee should inquire directly with Dog Haus about the total franchise and development fees collected during that period to gain a comprehensive understanding of the company's revenue streams and growth.