Under what condition will the initial fees and payments due to Dog Haus be deferred?

According to Dog Haus's 2025 Franchise Disclosure Document, initial fees and payments are deferred under a specific condition related to the completion of obligations. Specifically, all initial fees and payments due to Dog Haus will be deferred until the first business day following the date that Dog Haus has completed all of its material initial obligations to the franchisee under the Franchise Agreement or Area Development Agreement. This deferral is also contingent upon the franchisee beginning to conduct business at the first Dog Haus Restaurant. Once these conditions are met, all initial fees and payments become immediately due and payable.

This deferral is notably imposed by the Hawaii Department of Commerce and Consumer Affairs due to Dog Haus's financial condition. This suggests that the standard payment schedule outlined in Item 5 of the Franchise Disclosure Document is altered in this specific circumstance.

For a prospective franchisee, this deferral could provide a temporary financial benefit, allowing them to delay the initial investment until the franchisor has fulfilled their initial obligations and the restaurant is operational. However, it's crucial to note that the full amount becomes due immediately once the conditions are met, so franchisees should be prepared to make the full payment at that time. This arrangement is specific to Hawaii and is a result of Dog Haus's financial situation, which prospective franchisees should carefully consider.