Dogtopia FDD Item 6: Other Fees | What Franchisees Need to Know
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 Category | Amount | When Paid |
|---|---|---|
| Royalty Fee | 7% of weekly Gross Sales | Weekly |
| Brand and System Development Fund | Currently 2% of weekly Gross Sales (can increase to 3%) | Weekly |
| Cooperative Advertising | Up to 2% of weekly Gross Sales (not currently charged) | If/when activated |
| Digital Marketing Fee | $200 per month | Monthly |
| Technology Fee | $275 per month | Monthly |
| Email Package (Optional) | $50 per month | Monthly |
| Power BI Package (Optional) | $40 per month | Monthly |
| Pre-Opening Advertising | Minimum $15,000 | Before opening |
| Insurance | Required minimums | Annually |
| Transfer Fee | As disclosed | Upon 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?
| Fee | Calculation | Annual Cost |
|---|---|---|
| Royalty Fee | 7% of $916,000 | $64,120 |
| Brand Fund | 2% of $916,000 | $18,320 |
| Digital Marketing Fee | $200 x 12 | $2,400 |
| Technology Fee | $275 x 12 | $3,300 |
| Insurance | Pet 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
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Last updated: March 12, 2026
Understand Every Fee Before You Sign
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