Dogtopia FDD Item 6: Other Fees | Lopes Law LLC - Lopes Law LLC | National Franchise Law Firm

Dogtopia FDD Item 6: Other Fees | Lopes Law LLC

FDD Brand Analysis

Dogtopia FDD Item 6: Other Fees | What Franchisees Need to Know

Dogtopia FDD Item 6: Other Fees - Lopes Law LLC

Dogtopia FDD Item 6 is the section of the Franchise Disclosure Document that lists every ongoing fee a franchisee will pay after the initial $49,500 franchise fee. For prospective Dogtopia franchisees investing $608,000 to $1.27 million in a dog daycare and boarding facility, this is where the true recurring cost of the franchise relationship becomes clear. At Lopes Law LLC, we routinely review pet care franchise FDDs and the fee structure in Dogtopia’s Item 6 includes several line items that prospective buyers need to understand and model before committing capital.

This guide breaks down what Dogtopia discloses in Item 6, explains how the combined fee burden affects your margins, and identifies the specific obligations every buyer should evaluate.

What Is FDD Item 6 and Why Does It Matter for Dogtopia?

Item 6 of any Franchise Disclosure Document is titled “Other Fees.” Required by the FTC Franchise Rule (16 C.F.R. Part 436), it must disclose every recurring fee the franchisee owes during the franchise term. For Dogtopia, a growing dog daycare franchise with average unit volumes of approximately $916,000, the fees in Item 6 represent a significant ongoing cost that directly affects owner profitability.

What Fees Does Dogtopia FDD Item 6 Disclose?

Fee CategoryAmountWhen Paid
Royalty Fee7% of weekly Gross SalesWeekly
Brand and System Development FundCurrently 2% of weekly Gross Sales (can increase to 3%)Weekly
Cooperative AdvertisingUp to 2% of weekly Gross Sales (not currently charged)If/when activated
Digital Marketing Fee$200 per monthMonthly
Technology Fee$275 per monthMonthly
Email Package (Optional)$50 per monthMonthly
Power BI Package (Optional)$40 per monthMonthly
Pre-Opening AdvertisingMinimum $15,000Before opening
InsuranceRequired minimumsAnnually
Transfer FeeAs disclosedUpon transfer

How Does the 7% Royalty Affect Dogtopia Profitability?

The 7% royalty on weekly Gross Sales is the largest ongoing fee. For a Dogtopia location generating $916,000 in annual revenue, the royalty alone is approximately $64,120 per year. This fee is assessed on gross sales regardless of profitability, meaning you pay the same percentage whether your location is highly profitable or operating at a loss.

The 7% rate is on the higher end for pet care franchises. Some competing dog daycare systems charge royalties of 5% to 6%, which can represent a meaningful cost difference over the life of the franchise.

How Do Item 6 Fees Add Up for a Typical Dogtopia Location?

FeeCalculationAnnual Cost
Royalty Fee7% of $916,000$64,120
Brand Fund2% of $916,000$18,320
Digital Marketing Fee$200 x 12$2,400
Technology Fee$275 x 12$3,300
InsurancePet care coverage$15,000 to $25,000
Total Item 6 Fees$103,140 to $113,140

That is approximately 11.3% to 12.3% of gross sales going to franchise-related fees before facility costs, labor, supplies, or other operating expenses.

Attorney’s note: The Cooperative Advertising fee of up to 2% is not currently charged but can be activated at any time. If activated, it would add another $18,320 annually for a $916,000 location, bringing the total fee burden closer to 14% of gross sales. At Lopes Law LLC, we always model the maximum fee scenario to give clients a conservative projection.

Reviewing a Dogtopia FDD Right Now?

At Lopes Law LLC, our $3,000 flat-fee FDD validation review covers all 23 items and breaks down every fee obligation in plain language. Free 20-minute consultation to get started.

Why Legal Review of Item 6 Is Essential

The fees represent contractual obligations for the full franchise term. A franchise attorney can model the total burden, identify fees that can increase, and compare the structure to competing pet care franchises. At Lopes Law LLC, our flat-fee FDD validation review is $3,000. See also Item 19 financial performance, what to expect from an FDD review, and franchise agreement red flags. For existing franchisees, learn about our franchise exit audit.

Important: The fee amounts discussed are based on publicly available Dogtopia FDD information for educational purposes. Actual fees vary by location and agreement version. Always review the current FDD with a qualified franchise attorney before investing.

Frequently Asked Questions About Dogtopia FDD Item 6

What fees does Dogtopia FDD Item 6 cover? +
Dogtopia FDD Item 6 covers the 7% royalty on weekly Gross Sales, a 2% Brand and System Development Fund fee (can increase to 3%), up to 2% Cooperative Advertising (not currently charged), a $200/month Digital Marketing Fee, a $275/month Technology Fee, optional email and Power BI packages, insurance requirements, and transfer fees.
How much are Dogtopia’s total ongoing fees? +
For a Dogtopia location generating $916,000 annually, combined Item 6 fees are approximately $103,000 to $113,000 per year, or about 11% to 12% of gross sales. If the cooperative advertising fee is activated, the total could increase to approximately 14% of gross sales.
Can Dogtopia increase the Brand Fund fee? +
Yes. The Brand and System Development Fund fee is currently 2% of weekly Gross Sales but can be increased to 3%. Additionally, a Cooperative Advertising fee of up to 2% can be activated at any time. Combined, these potential increases could add approximately 3% to the total fee burden.
What is the $15,000 pre-opening advertising requirement? +
Before opening, Dogtopia franchisees must spend at least $15,000 on advertising and marketing activities to promote the business. This is a one-time cost but is in addition to the ongoing digital marketing and brand fund fees.
How does Dogtopia’s 7% royalty compare to other pet franchises? +
The 7% royalty is on the higher end for pet care franchises. Some competing dog daycare systems charge 5% to 6%. Over the life of a 10-year franchise term, a 1% to 2% royalty difference can represent tens of thousands of dollars.
Should I hire a franchise lawyer before buying a Dogtopia franchise? +
Yes. The fee structure includes multiple percentage-based and fixed fees that compound over the franchise term. A franchise attorney can model the total fee burden, identify potential increases, and calculate projected net income. At Lopes Law LLC, our $3,000 flat-fee FDD validation review covers all 23 items.

Reach out, we are friendly. Call now for a free consultation at (267) 777-9117 or schedule your free 20-minute consultation online.

Last updated: March 12, 2026

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