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Dog Haus

Hot Dogs & Specialty QSR · 2024 FDD

Dog Haus offers fast casual and biergarten dining experiences, known for their gourmet hot dogs and craft beers, operating in the casual dining restaurant industry.

$357,437 – $625,800
Total investment
$40,000
Franchise fee
6%
Royalty

About Dog Haus

Founded2010
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Dog Haus franchise FAQ

How much does it cost to open one — the total initial investment?

The total initial investment varies based on the type of franchise: - For a Fast Casual Restaurant, it ranges from $357,437 to $625,800. - For a Biergarten Restaurant, it ranges from $668,412 to $1,340,300. - For a Remote Kitchen, it is between $99,612 and $212,900. These amounts include fees paid to the franchisor or its affiliates. [p.1]

What is the initial franchise fee?

The initial franchise fee is $40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant, or Dog Haus Remote Kitchen. This fee is payable in full when you sign your Franchise Agreement (Exhibit A), and if applicable, also with the Remote Kitchen Addendum (Exhibit C). [p.14]

What are the ongoing royalty and advertising fees?

The ongoing royalty fee is 6% of sales, recognized as revenue when related sales are made by the franchisees. Additionally, franchisees must pay marketing, creative, and technology fees at 2% of net sales for specific advertising purposes. [p.308, p.308]

How long is the initial franchise agreement, and can I renew it?

The initial term of the franchise agreement and renewal terms are not specified in detail within these excerpts. The document does indicate that if applicable law requires notice before the expiration of the initial or renewal term, the agreement may remain in effect on a week-to-week basis until such notice is given [p.101]. However, specific lengths for these terms are not provided.

Can I sell or transfer my franchise, and what does that require?

The franchisor has the right to refuse a transfer of ownership of the franchise except for good cause, which includes but is not limited to unspecified factors. This isn't specified in the excerpts.

On what grounds can the franchisor terminate the agreement?

The franchisor can terminate the agreement on any grounds available by law [p.275], but it must provide a "good cause" for termination, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and cure such failure within 30 days after receiving written notice [p.269].

What financial requirements — net worth and liquid capital — do I need to qualify?

This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees or potential buyers beyond maintaining adequate reserves and working capital sufficient to cover risks and contingencies for at least three months [p.115, p.30].

Do I get an exclusive or protected territory?

No, you do not receive an exclusive territory. However, you are granted a protected area of 1/2 to 5 miles from your Franchised Restaurant, and the franchisor will not own, operate, sell, or issue a franchise for another Dog Haus Restaurant within this Protected Area unless you are in default under your Franchise Agreement [p.53, p.99].

What training and ongoing support does the franchisor provide?

The franchisor provides an Initial Training Program, including both virtual and in-person sessions, lasting approximately two weeks of virtual training followed by eight to thirteen days of in-person training. This program covers various aspects such as food preparation, portion control, cooking procedures, packaging methods, system standards, marketing techniques, and equipment maintenance [p.106]. Additionally, the franchisor offers ongoing support for site selection, architectural plans, interior and exterior design, training, marketing, sales techniques, and opening assistance [p.312]. This support is designed to substantially complete their performance obligations under the franchise agreement.

How many franchised outlets are there, and how many have closed or been terminated?

As of December 31, 2024, there were a total of 68 franchised Dog Haus outlets (33 Biergartens and 14 Fast Casual Restaurants) in operation for at least one year. Four franchisees had their outlets terminated, canceled, not renewed, or reacquired by the company during the fiscal year ending December 31, 2024 [p.79, p.86].

Does the franchisor share any financial performance or earnings information?

The franchisor is permitted to provide financial performance information if there is a reasonable basis for it and if it is included in the Disclosure Document. However, other than the information specified in Item 19, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to make such representations either orally or in writing [p.73].

What am I restricted to selling, and where must I buy supplies?

You are not specifically restricted to selling any particular items, but you must purchase Dog Haus Proprietary Products only from the franchisor, their affiliates, or Dog Haus Approved Suppliers [p.32]. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate [p.4], and you need approval from the franchisor to procure any items or services from other sources [p.34].