Dogs Cream
Dogs & Cream offers customizable hot dogs, burgers, ice cream, and shakes in various formats including dine-in, takeout, drive-thru, and delivery. Known for creative craft builds and made-to-order treats, this franchise operates in the quick-serve restaurant industry.
Dogs Cream franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a Dogs & Cream Franchised Business is $278,800 to $799,300. This includes $41,355 that must be paid to the franchisor and its affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee for The Dogs & Cream is $40,000. This fee must be paid in full when you sign the franchise agreement and is nonrefundable [p.8, p.18, p.67].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically at Franchisor's then-current rates and amounts, plus an additional 2% royalty on gross revenues during the Interim Term if the agreement expires. There is no specific mention of advertising fees in the provided excerpts; however, the franchisor retains sole discretion over national, regional, and local advertising concepts, materials, and costs [p.86].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You can request to buy another Dogs & Cream franchise if you meet the financial qualifications and are in good standing under the Franchise Agreement [p.38]. However, the franchisor reserves the right to determine whether to approve such a request. For transferring your own franchise, the document does not specify clear procedures but mentions rights of first refusal for the franchisor and conditions for transfers to Involuntary Transferees [p.94]. 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.199]. However, under Virginia law, terminating a franchise without reasonable cause is unlawful [p.204]. Additionally, if the termination is based on default or stated grounds that do not constitute "reasonable cause" as defined by Virginia law, such provisions may not be enforceable [p.204].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on the net worth or liquid capital required for qualification as a franchisee. However, it does mention that potential transferees (both developers and franchisees) must demonstrate adequate financial resources and capital to operate the franchised business [p.124, p.92].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.184, p.36, p.39]. However, if you sign an Area Development Agreement, your rights to the Development Area will be protected as outlined in the agreement, typically within a 3-mile radius from each site but this can vary depending on market area [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides a tuition-free initial training program that includes various aspects such as customer service, operational management, financial management, and more [p.15]. This training can last up to 2 weeks depending on your experience level. Additionally, the franchisor may offer additional and ongoing training for staff and managers during the term of the Franchise Agreement [p.29].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet [p.54]. Additionally, any other financial performance information received should be reported to specified contacts as outlined in the FDD [p.54].
What am I restricted to selling, and where must I buy supplies?
You are permitted to sell only goods or services approved by the franchisor, as specified in the Dogs & Cream Operating Manual [p.43]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].