Dog Haus Worldwide

The termination rate of 8.5% is approximately 8 times higher than the typical range for fast casual restaurants—what are the primary reasons franchisees are being terminated, and can you provide examples of the 25 termination causes listed in the agreement?

Transfer rate of 16.9% is nearly 3 times the typical range—what percentage of these transfers are initiated by franchisees seeking to exit versus franchisor-approved transfers, and what is the typical success rate of incoming buyers?

Total potential term of 10 years is significantly shorter than the typical 20-26 year range—why does the franchise not offer renewal options, and what happens to franchisees at the end of the 10-year initial term?

Non-compete restriction is limited to 2 miles compared to the typical 5-20 mile range—how does this limited geographic protection affect franchisees' ability to prevent direct competition after exit?

The number of termination causes (25) exceeds the typical range—can you identify which categories of default are non-curable versus curable, and what percentage of actual terminations involved non-curable defaults?

Unit exits increased from 14 total exits in 2022 to 20 in 2024 while the system grew to 59 units—what factors contributed to this acceleration in exits, and are there specific regions or demographics with higher exit rates?

Personal guarantees are required from all owners and their spouses for joint and several liability—has this personal guarantee requirement been enforced in any disputes, and what recourse do franchisees have if the franchisor pursues spousal liability?

The franchise requires use of approved suppliers for 8 product categories—can you provide the complete list of mandatory supplier categories and typical cost impact compared to open-market sourcing?

System Health scores 49 out of 100, below the typical range—what specific operational or financial metrics drive this low system health score, and what initiatives is the franchisor undertaking to improve system performance?

Contract Terms score 55, below the typical range—which specific contract provisions contribute to this low score, and are any of these terms subject to negotiation for new franchisees?

The 5-day cure period for non-payment and 10-day cure for non-compliance are relatively short—what is the franchisor's track record of actually providing these cure periods, and have franchisees successfully remedied defaults within these windows?

Ongoing Fees score 60, below the typical 61-62 range—when combined with the 6% royalty and 2% ad fund, how do total ongoing costs compare to other fast casual competitors, and are there volume-based reductions?

With the franchise fee of $40,000 and ongoing technology fee of $254, what specific systems and support does this technology fee cover, and does it include point-of-sale, inventory management, and digital marketing tools?

Three years of unit history show growth from 49 to 59 units, but exit rates remain elevated—of the net 10-unit increase, how many are new franchisees versus existing locations expanding, and what is the retention rate for original franchisees?

Territory is marked as protected but not exclusive—can the franchisor open company-operated locations or other brand formats within a franchisee's territory, and has this occurred?

Item 19 financial performance is available—how many units reported sales data, what is the range of performance (top 25% vs. bottom 25%), and are there notable differences based on location type or franchisee tenure?

Renewal fee is $5,000 after the initial 10-year term—if renewal options were offered, what would be the cost and what conditions must be met to qualify for renewal?

Given the elevated termination rate of 8.5%, what are the most common operational or financial factors cited in termination notices, and what financial thresholds trigger franchisor concern?

The franchise reports zero litigation over 3 years despite elevated exit rates—does this indicate strong franchisee satisfaction, settlement agreements that prevent disclosure, or legal challenges that were resolved informally?

With average gross sales of $1.6M, what is the typical franchisee net profit margin, debt service burden from the initial investment, and average time to breakeven for new locations?