In Washington, when will Dog Haus require or accept payment of any initial franchise fees from a franchisee?

According to Dog Haus's 2025 Franchise Disclosure Document, the franchisor will not require or accept initial franchise fees from franchisees in Washington until certain conditions are met. Specifically, Dog Haus will defer collecting the initial franchise fee until the franchisee has completed all initial training they are entitled to under the franchise agreement or offering circular. Additionally, Dog Haus will wait until the franchisee is open for business before requiring or accepting the initial franchise fee.

This policy is in place of an impound of franchise fees, which is a mechanism where the fees are held in escrow until the franchisee has met certain milestones. By deferring the fee, Dog Haus aims to reduce the financial burden on new franchisees during the initial stages of setting up their business. This arrangement benefits the franchisee by allowing them to allocate their initial capital towards training, setup costs, and pre-opening expenses, rather than immediately paying the franchise fee.

This deferred payment structure is specific to Washington, as indicated by the inclusion of this clause in the Washington Addendum to the Franchise Agreement. Prospective franchisees in Washington should carefully review this addendum to understand their rights and obligations regarding the payment of initial franchise fees. This arrangement provides a degree of financial flexibility and security for franchisees in Washington, aligning the franchisor's interests more closely with the franchisee's success during the critical early stages of the business.