Dog Haus Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Dog Haus is a fast-casual restaurant franchise known for gourmet hot dogs, sausages, and craft burgers served on Hawaiian-roll buns. Franchisees run the restaurants, managing food prep, counter service, and staffing.
FranchiseVerdict summary · 2026
A Dog Haus franchise requires a total initial investment of $357K – $626K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.8M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 26 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $357K – $626K
- 60th pct Service Resta…
- Avg gross sales
- $1.8M
- 29th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 59
- 68th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $357K – $626K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.8M/year (median $1.7M).
- RISKVerdict A (Strongest tier), verdict score 91/100 (higher is better). SBA loan charge-off rate of 0.0% across 26 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG5 units terminated last reporting year (8.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Dog Haus Worldwide, LLC
- Predecessor
- Dog Haus International, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Montagano
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 22 Central Court, Pasadena, California 91105
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $7.1M
- vs $6.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Dog Haus
- Pyramid Powder
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Michael Montagano
- Headquarters
- CA
- Founded
- 2010
- FDD year
- 2025
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 25% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $302K | $541K |
| Total initial investment | $357K | $626K |
Source: Dog Haus 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $357K – $626K
- Middle of category vs category
- Liquid capital req'd
- $15K – $45K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 53% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$259K
14.0% margin
Unlevered ROIC
50%
EBITDA / total invested capital
Payback
24 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Dog Haus unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
50%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Dog Haus units return on equity?
Equity IRR · 5-yr
38.1%
5.02× MOIC
Year-1 DSCR
2.19×
EBITDA ÷ debt service
Equity required
$4.0M
on $12.9M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.8M
- Per unit, per year
- Median gross sales
- $1.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 27 outlets
- vs category median 20
- Range (low → high)
- $931K→$3.1M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.8M/year in gross sales. Revenue-to-investment ratio: 3.8x.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System expanding at 20.4% CAGR over 3 years across 59 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Dog Haus Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 7
- Last reporting year
- Closed
- 5
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +20.4%
- Net unit change over 3 years
- 3-yr CAGR
- +20.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 0
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 12
- Franchisor's next-year forecast
- Transfer rate
- 16.9%
- Owners selling to other franchisees
- Termination rate
- 8.5%
- Franchisor-initiated terminations
- Ceased ops
- 8.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $16.3M
- Median loan
- $602K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 0
- Typical loan rate
- 7.1%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 514
- 3.7 per loan
- Lender concentration
- 23%
- top lender's share
Borrower mix: 73% went to startups / new businesses, 27% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Dog Haus franchisees
Showing 3 of 15 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Dog Haus's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 26 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Dog Haus presents moderate-to-cautionary risk: small unit count with weak growth, opaque profitability metrics, and wide investment variance mask true earnings potential despite reasonable franchise fees and protected territories.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Largest disclosed settlement: $65,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 91 / 100 verdict
- 01MEDSlow unit growth of 3.5% YoY with only 59 units suggests limited brand momentum and market traction
- 02MEDNet income not disclosed — franchisees cannot assess actual take-home earnings or ROI timeline
- 03MINOR6% royalty on gross sales is above average for QSR and compounds burden if net margins are thin
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 102 hrs
- Training location
- Dog Haus Restaurant in Los Angeles, CA or other designated location; virtual communication platform
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Toast POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast POS System
Item 20 · call current owners
Franchisee Contacts
78 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Dog Haus · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Dog Haus franchise?
The total investment to open a Dog Haus franchise ranges from $357K – $626K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Dog Haus franchise owners earn?
According to Item 19 of the Dog Haus FDD, the average gross sales per unit is $1.8M. The median is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Dog Haus FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Dog Haus FDD and qualifies whose outlets they describe.
What is Dog Haus's franchise failure rate?
Based on SBA 7(a) loan data, Dog Haus has a charge-off rate of 0.0% across 26 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Dog Haus franchise locations are there?
As of their most recent FDD filing, Dog Haus has 59 total units in the United States, including 59 franchised units and 0 company-owned units. 7 new units were opened in the latest reporting year.
Is Dog Haus a good franchise to buy?
FranchiseVerdict rates Dog Haus as a A-grade franchise with a verdict score of 91 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.