About Lost Dog Cafe Franchise
Lost Dog Cafe is a casual restaurant franchise that has been franchising since 2009, backed by Underwood McAlwee Corporation.
The brand combines a full menu of pizza, sandwiches, salads, and cafe favorites with a strong community spirit and a dedication to animal rescue and adoption.
Lost Dog Cafe locations are known for their warm, welcoming atmosphere and the distinctive dog themed decor that reflects the brand's mission.
Lost Dog Cafe Franchise Cost & Fees
Minimum Investment
$804K
Average Investment
$1.1M
Maximum Investment
$1.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 5.0% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Marketing Fee Not to Exceed 2% of Net Sales; Local Advertising Fee 0.5% of Net Sales | National brand fund |
| Total Investment Range | $803,500 – $1,490,000 | Includes build-out, inventory, working capital |
The investment range of $804K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.0% of Net Sales) and marketing fee (Marketing Fee Not to Exceed 2% of Net Sales; Local Advertising Fee 0.5% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Site Evaluation Fee | $0 | $1,500 |
| Grand Opening Advertising Fee | $5,000 | $10,000 |
| 1st Month's Lease Payment and Security Deposit | $10,000 | $30,000 |
| Travel & Living Expenses While Training | $0 | $5,000 |
| Computer Equipment | $15,000 | $25,000 |
| Signage | $2,000 | $5,000 |
| Fixtures, Furnishings & Leasehold Improvements | $736,500 | $1,336,500 |
| Opening Inventory and Supplies | $10,000 | $25,000 |
| Miscellaneous Expenses | $0 | $25,000 |
| Additional Funds - 3 months including Travel & Living Expenses While Training | $0 | $2,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Audit Fee | Cost of audit |
| Computer System Maintenance Fees | $2,000 to $6,000 annually |
| Insurance | Varies under circumstances |
| Interest on Late Payments | 1.5% per month, or the highest rate permitted by law, whichever is less |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | minimum of 2 weeks (50-60 hours per week) |
| Classroom Training | 0 |
| On-the-Job Training | 100-150 hours |
| Training Location | Corporate Headquarters/Franchisor-Owned location in the Washington, DC metropolitan area or other designated location |
| Additional Training | The franchisor may charge training fees for managers who do not successfully complete initial training, for repeat training, or for new managers/continuing training, at a current rate of $200 per trainer per day, plus expenses. Computer training fees may also be charged by a third-party provider. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Description | The franchise is granted for a specific, franchisor-approved location within an Exclusive Delivery Area, which is determined and approved at the time of signing the Franchise Agreement and described in Exhibit A. The franchisee has the exclusive right to provide Delivery Service within this area, and the franchisor will not grant rights to others or operate its own units for delivery within this area, except for National Account Arrangements. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | four (4) successive renewal terms of five (5) years each |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, the franchisee must provide written notice 9-12 months prior to term end, pay the renewal fee, be in substantial compliance with the Franchise Agreement (no uncured material defaults or more than 3 material defaults in 24 months), be current on all monetary obligations, meet current franchisee qualifications, execute the then-current Franchise Agreement (without paying the initial fee), execute a general release, secure rights to operate from the location for the renewal term, and make required renovations/re-equipping. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transfers require franchisor consent, which will not be unreasonably withheld if conditions are met: transferee meets qualification requirements, franchisee is current on obligations, transferee signs a new Franchise Agreement or assignment and completes training, franchisee pays a transfer fee, franchisee signs a release and subordination agreement, and guarantees payment/performance if required. |
| Termination for Cause | The franchisor may terminate for cause, with or without notice depending on the default. Automatic termination without notice occurs for insolvency, bankruptcy, unsatisfied judgments, appointment of a receiver, attachment/seizure of interest, execution levied, material misrepresentation/omission, abandonment, loss of right to transact business/possession of premises, fraudulent/criminal conduct, failure to maintain licenses/insurance, unapproved transfer, unauthorized use/disclosure of Confidential Information, violation of non-competition covenants, falsification of books/records, or failure to transfer interest of deceased/disabled owner within 9 months. For curable defaults (e.g., failure to submit sites, pay money, maintain cleanliness, meet quality standards, or other defaults), cure periods range from 24 hours to 30 days. |
| Non-Compete Period | during the term of this Agreement (including any Renewal Term, if applicable) and for a period of two (2) years following its expiration or termination |
| Non-Compete Details | During the term of the agreement (including renewals), the franchisee and owners may not divert customers to a competitive business or hold any ownership interest or capacity in any competitive business located anywhere. For two years following expiration or termination, they may not be involved in a competitive business at the former location, within the Exclusive Delivery Area, or within 25 miles of the former location or any other Lost Dog Cafe location existing or in development at the time of termination/expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While personal participation in direct operation is recommended, it is not required. Owners are not required to have equity interest. However, the franchisee must ensure all employees are qualified, trained, and supervised. At least one principal manager and one assistant manager must be employed full-time, devote their best efforts to management and operation, and complete the Initial Training program. |
| Required Suppliers | Franchisees must meet franchisor specifications for all food, goods, services, supplies, fixtures, furnishings, equipment, inventory, and computer hardware/software. All food items must be recommended or approved brands. The franchisor may maintain a list of approved suppliers for products bearing Proprietary Marks or other items used in operation, and franchisees must purchase from these approved suppliers unless consent is given otherwise. |
| Supply Restrictions | The franchisor may designate itself or an affiliate as an approved supplier for site build-out services. While not currently an approved supplier for other products/services (except those rendered as part of the franchise without separate charge), the franchisor reserves the right to receive rebates, advertising fund contributions, or other concessions from approved suppliers, and to charge initial and annual approved supplier fees. Franchisees can propose new suppliers for approval, subject to franchisor examination and fees. Approval may be denied or limited to a single source to ensure consistency, quality, volume discounts, trade secrets, or business interests. |
| Franchisor Revenue from Suppliers | In the year ending December 31, 2020, total revenues were $445,845, with 0% derived from purchases or fees paid by franchisees to the franchisor as an approved supplier. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations made by the franchisee. |
Lost Dog Cafe Franchise Earnings — Item 19
Lost Dog Cafe does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Lost Dog Cafe does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Lost Dog Cafe Litigation & Risk Flags
Clean Litigation RecordLost Dog Cafe has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Lost Dog Cafe System Growth
Total Units
5
Franchised
4
Company-Owned
1
Lost Dog Cafe currently operates 4 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 5 |
| 2020 | 0 | 0 | 5 |
| 2021 | 0 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, MD, MI, MN, NE, IN, ND, OR, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$214K
Net Income
$132K
Total Assets
$396K
Lost Dog Cafe Franchise — FAQ
The total investment to open a Lost Dog Cafe franchise ranges from $803,500 to $1,490,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Lost Dog Cafe charges a royalty fee of 5.0% of Net Sales of gross sales, plus a Marketing Fee Not to Exceed 2% of Net Sales; Local Advertising Fee 0.5% of Net Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Lost Dog Cafe Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Lost Dog Cafe to ensure you have the most up-to-date version.
Lost Dog Cafe does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Lost Dog Cafe has been franchising since 2009. The FDD shows an investment range of $803,500-$1,490,000, a 5.0% of Net Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $803,500 to $1,490,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Lost Dog Cafe?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Lost Dog Cafe and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Lost Dog Cafe or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com