Sherman German Ice Cream is the name of the store near which the dogs are sleeping.
Little Dog: There's something fishy going on here. All this ice cream... it's like a dream come true! Hey! Maybe it is a dream. Maybe we're still asleep. Pinch me.
Little Dog: Ice cream! Beautiful... delicious... ice creamy ice cream!
Little Dog: Finally, we're awake. I was exhausted from all that sleep.
Little Dog: Why'd you wake me up?
Big Dog: So we could wake up.
Little Dog: Well if you didn't wake me up, I might've had a nightmare and that would've woke me up. Then I could've woke you up and we'd both be awake. But since you did wake me up, I can't wake up from this nightmare so I can't wake you up! So we're both still asleep!!
(after pinching each other to wake each other up)
Little Dog: Did you ever pinch me when I was awake?
Big Dog: No.
Little Dog: Then we must still be dreaming.