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Under what circumstances would a Dog Haus franchisee be required to purchase or lease from Dog Haus or its approved suppliers?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

You must serve all and only the products we authorize ("Dog Haus Authorized Products"). We may provide you with our proprietary hot dogs, sausages, hamburgers, chicken and plant-based food products, sauces, marinades, branded products and proprietary beverages, food products, packaging and products that are produced or manufactured according to our trade secrets, proprietary recipes, specifications and/or formulas

(collectively, the "Dog Haus Proprietary Products"). You must buy Dog Haus Proprietary Products only from us, our affiliates or our Dog Haus Approved Suppliers. Currently, we, our affiliates and our Dog Haus Approved Suppliers are the only approved suppliers of Dog Haus Proprietary Products. We will not be obligated to reveal our trade secrets or the recipes, specifications and/or formulas of Dog Haus Proprietary Products to you or any third party. You must purchase, use, and maintain in stock a sufficient amount of Dog Haus Authorized Products and Dog Haus Proprietary Products to operate your Franchised Restaurant.

You must purchase and install, at your expense, all fixtures, furnishings, equipment (including a point-of-sale cash collection system), décor, and signs as we direct. You may not install on or about your Franchised Restaurant any merchandise, furnishings, interior or exterior décor items, supplies, fixtures, equipment or utensils unless they have been approved by us in writing. You must purchase these items from a Dog Haus Approved Supplier.

You must purchase, lease or license all computer hardware and software designated by us for the Franchised Restaurant at your expense. You must maintain and update all computer hardware and software as required

by us. Currently, Toast, Inc. is our only approved supplier for POS equipment, including the Dog Haus Suite of Tools, a dashboard portal for location sales and operation reports; support plans and handheld terminals. Currently, Toast, Inc. is our only approved supplier for merchant processing services, which will assist you with your payment processing needs. We have the right to change POS systems and merchant service providers at any time upon 90 days' notice. (See Item 11).

You must accept online orders through our website and mobile applications. You must use our approved supplier of our online ordering website and mobile applications and our approved supplier authorized to manage our website and mobile applications. We have the right to change our website and mobile applications at any time upon 90 days' notice. (See Item 11).

You may not create or issue any gift certificates or gift cards and may only sell gift certificates or gift cards that have been issued by us that are accepted at all Franchised Restaurants. You must participate in all gift certificate and/or gift card administration programs as we may designate from time to time. You must use our approved gift card vendor. Currently, Valutec is our only Approved Supplier for gift cards. You must pay Valutec a $25 one-time set up fee, a $5 monthly fee and fee of $.018 per gift card transaction. We have the right to change gift card suppliers at any time upon 90 days' notice.

We may designate certain non-proprietary food products, condiments, beverages, raw materials, fixtures, furnishings, equipment, uniforms, supplies, paper goods, menus, packaging, forms, customer comment cards, POS Systems, computer hardware, software, modems and peripheral equipment and other products, supplies, services and equipment, other than Dog Haus Proprietary Products or Sub-Branded Products, that you may or must use or sell at your Franchised Restaurant ("Non-Proprietary Products and Services"). You may use, offer or sell only those Non-Proprietary Products and Services that we expressly authorize. You will purchase Non-Proprietary Products and Services from Dog Haus Approved Suppliers.

If you execute a Franchise Agreement and the Remote Kitchen Addendum to Franchise Agreement, your Remote Kitchen must be operated from an Approved Supplier's Facility. You must pay an Approved Supplier a monthly fee to use the Remote Kitchen Facility, which currently ranges from $2,500 to $15,000, depending on where your Remote Kitchen is located. You must also pay the Approved Supplier a security deposit equal to one month's fee. You may also pay the Approved Supplier additional fees for use of the Remote Kitchen Facility, which will vary between Approved Suppliers and where the Remote Kitchen Facility is located.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are generally required to purchase specific products and services from Dog Haus Approved Suppliers. This includes 'Dog Haus Branded Products,' which bear Dog Haus trademarks, and 'Dog Haus Proprietary Products,' which are made according to Dog Haus's recipes or specifications. Franchisees must also buy authorized products, proprietary hot dogs, sausages, hamburgers, chicken and plant-based food products, sauces, marinades, branded products and proprietary beverages, food products, packaging and products that are produced or manufactured according to Dog Haus's trade secrets, proprietary recipes, specifications and/or formulas only from Dog Haus, its affiliates, or approved suppliers.

Dog Haus franchisees are also obligated to purchase or lease equipment, fixtures, computer hardware and software, and online ordering systems from approved suppliers. Specifically, franchisees must purchase and install all fixtures, furnishings, equipment, décor, and signs as directed by Dog Haus from a Dog Haus Approved Supplier. Toast, Inc. is currently the only approved supplier for POS equipment and merchant processing services. Additionally, franchisees must use Dog Haus's approved supplier for their online ordering website and mobile applications.

Furthermore, franchisees are required to use Valutec, the only Approved Supplier for gift cards, and must participate in all gift card administration programs. They must pay Valutec a $25 one-time set up fee, a $5 monthly fee and a fee of $.018 per gift card transaction. For Non-Proprietary Products and Services, franchisees must purchase from Dog Haus Approved Suppliers, ensuring these suppliers meet Dog Haus's standards for insurance, indemnification, non-disclosure, and product specifications. If a franchisee operates a Remote Kitchen, it must be located in an Approved Supplier's Facility, with monthly fees ranging from $2,500 to $15,000, plus a security deposit equal to one month's fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.