Under what circumstances does Dog Haus charge a $10,000 Lease Negotiation Fee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
fault is not cured. | Payable if you default under your Franchise Agreement. |
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of audit (estimated to be $1,000 - $5,000) plus interest at the highest rate allowed by law, which is currently 10% in California (not to exceed 18%) 2 | On demand | Payable if an audit shows an und |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee may be subject to a $10,000 Lease Compliance Fee. This fee is charged if the franchisee fails to obtain the landlord's agreement to include specific provisions outlined in Section 5.2 of the Franchise Agreement in their lease, or if they fail to secure the landlord's execution of the Option to Obtain Lease Assignment, and this failure is due to the franchisee's own fault.
This fee is intended to cover damages incurred by Dog Haus due to the franchisee's non-compliance with lease requirements. It is important for prospective franchisees to understand the specific requirements of Section 5.2 of the Franchise Agreement and the Option to Obtain Lease Assignment to avoid incurring this substantial fee.
The Lease Compliance Fee is a one-time fee of $10,000, which is due on demand. This fee is separate from other fees, such as the Lease Negotiation Fee of $1,500, which is charged if the franchisee requests Dog Haus's consent to execute a lease containing modified versions of certain provisions. Franchisees should carefully review the lease terms and ensure compliance to avoid this fee.