Dog Haus Franchise Costs, Fees & Owner Salary (2023)

Dog Haus is a prominent franchise that has carved its niche in the fast-casual dining industry, specializing in gourmet hot dogs, sausages, and burgers. Founded in 2010 by Hagop Giragossian, Quasim Riaz, and André Vener, Dog Haus is headquartered in Pasadena, California. With its humble beginnings as a food truck, it quickly gained popularity and evolved into a thriving franchise business.

Dog Haus initiated its franchising journey in 2013, rapidly expanding its presence across the United States. What distinguishes Dog Haus from its competitors is its creative approach to traditional comfort food. They offer a diverse menu featuring an array of signature hot dog and sausage creations, including "The Fonz," "The Sooo Cali," and "The Scott Baioli," along with innovative burger options. Their dedication to using high-quality ingredients and artisanal bread buns sets them apart in the crowded fast-food market.

Moreover, Dog Haus provides an enjoyable and unique dining experience by combining the casual vibe of a neighborhood hot dog stand with a full-service restaurant. The franchise's commitment to craft beer and a fun, welcoming atmosphere further differentiate it from the competition, making it a popular destination for those seeking a delicious, elevated fast-casual dining experience.

Initial Franchise Fee

The initial franchise fee for Dog Haus is $40,000, payable at the signing of the Franchise Agreement​​.

Royalty Fee

For a Dog Haus Fast Casual Restaurant and Dog Haus Biergarten Restaurant, the Royalty Fee is 6% of Gross Sales​​. For a Remote Kitchen, the Royalty Fee is 4% of Gross Sales​​.

Marketing, Creative, and Technology Fee

For Fast Casual or Biergarten franchisees, the fee is currently 2% of Gross Sales, with a cap of 3.5% of Gross Sales upon 90 days’ prior written notice​​. For Remote Kitchen franchisees, the fee is currently 0.5% of Gross Sales, with a cap of 2.5% of Gross Sales upon 90 days’ prior written notice​​.

Local Marketing Expenditure

Dog Haus does not currently require a Local Marketing Expenditure, but if implemented, franchisees must spend 1% of Gross Sales or $3,750 per calendar quarter, whichever is greater​​.

Pre-Opening Initial Training Program

The franchisor provides a comprehensive Pre-Opening Initial Training Program, designed to prepare the franchisee's supervisorial and managerial personnel for the operation of a Dog Haus Restaurant. This program includes practical training on topics such as food and beverage preparation, portion control, cooking procedures, packaging procedures, adherence to Dog Haus System standards, marketing, customer service techniques, reports, and equipment maintenance.

The length and content of this training may vary based on the experience and skill level of the individuals attending. Notably, the Principal Owner must also attend and complete two days of marketing training at the franchisor’s corporate office as part of this program.

This training is held at the franchisor's training facilities, Dog Haus Restaurants operated by affiliates or franchisees, or other designated locations. The program is structured to provide hands-on experience and ensure that the franchisee’s team is well-versed in the operational standards of Dog Haus Restaurants​​​​​​​​.

Additional Post-Opening Initial Training Programs

Following the opening of the franchised restaurant, the franchisor may provide additional Initial Training Programs for new or replacement supervisorial or managerial personnel at the franchisee's request and at the franchisor’s discretion. These Additional Post-Opening Initial Training Programs are designed to ensure continuity and adherence to the brand's standards even as staffing changes occur within the franchisee's team​​​​.

The franchisor does offer territory protection to franchisees. Each franchisee is granted a Protected Area, typically defined as a radius ranging from 1/2 to 5 miles around the franchised restaurant.

The specific size of the Protected Area is determined based on various factors, including demographics, population size, age and income levels, neighboring and adjacent retail tenants, road visibility, traffic patterns, geographical barriers, and the proximity of other Dog Haus Restaurants or competitors serving the same market area.

As long as the franchisee is not in default under their Franchise Agreement, the franchisor commits not to own, operate, sell, or issue a franchise to another franchisee within this Protected Area. However, it's important to note that franchisees do not receive an exclusive territory beyond this Protected Area, and the franchisor retains the right to develop, own, operate, and grant franchises outside of it.

The Dog Haus franchise system requires a high level of active involvement from the franchisee, particularly from the Principal Owner, who is mandated to oversee the day-to-day operations of the franchised restaurant and devote full time and best efforts solely to its operation.

This commitment includes direct supervision and management of the franchise, adherence to the franchisor's specified educational, experience, and financial criteria, and active participation in the management and operational decisions of the restaurant.

The franchise agreement specifically outlines that the Principal Owner must, unless otherwise agreed in writing, be significantly involved in the franchise's daily operations and hold a minimum of 10% equity and voting rights in the franchise entity.