Canine_Dimensions 2025 Franchise FAQ - FDD Ninja

Question 1

According to the Canine Dimensions questionnaire, what is the franchisee's responsibility regarding employees?

Accepted Answer

| 18. Do you understand that any training, support, guidance or tools we provide to you as part of the franchise are for the purpose of protecting the Canine Dimensions® brand and trademarks and to assist you in the operation of your business and not for the purpose of controlling or in any way intended to exercise or exert control over your decisions or day-to-day operations of your business, including your sole responsibility for the hiring, wages and other compensation (including benefits), training, supervision and termination of your employees and all other employment and employee related matters?                                                                                                                                                                                                                                                                                                  |  |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| Yes |  |  |
| No |  |  |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 2

What conditions must a Canine Dimensions franchisee meet to obtain a successor franchise?

Accepted Answer

Canine Dimensions Franchising, LLC, and using certain Marks, including the trademark and service mark Canine Dimensions.
B. Franchisee desires to Transfer his/her its Canine Dimensions franchise / obtain a successor franchise (circle one).

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

In consideration of the mutual covenants and conditions contained in this Mutual General Release and in the Franchise Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties, the parties agree as follows:

- 1. Canine Dimensions and Franchisee do hereby mutually release and forever discharge each other and each other's heirs, successors, representatives, assigns, agents, employees, officers, and directors ("Designees"), and each of them, of and from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature, character, and description known or unknown, vested or contingent, which each party now owns or holds, or has at any time heretofore owned or held, or may at any time own or hold against the other party hereto, arising prior to and including the date of this Mutual General Release Agreement; provided, however, that this release shall exclude claims arising from assertion of any continuing rights reserved in this Mutual General Release Agreement.
- 2. This release shall not apply to any claims which the Franchisee may have arising under (a) the California Franchise Investment Law or the California Franchise Relations Act; (b) the Hawaii Franchise Investment Law; (c) the Maryland Franchise Registration and Disclosure Law; (d) the Minnesota Franchise Act; (e) the New York Franchise Investment Law; (f) the North Dakota Franchise Investment Law; or (g) the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This release shall exclude claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business. The parties expressly agree that this Mutual General Release Agreement will not apply to any claims Canine Dimensions may have under any Promissory Notes ancillary to the Franchise Agreement, or that pertain to other payment arrangements that the parties may have agreed upon.

3. Waiver of California Civil Code Section 1542.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 3

What is the franchisee acknowledging when signing the Canine Dimensions questionnaire?

Accepted Answer

| 18. Do you understand that any training, support, guidance or tools we provide to you as part of the franchise are for the purpose of protecting the Canine Dimensions® brand and trademarks and to assist you in the operation of your business and not for the purpose of controlling or in any way intended to exercise or exert control over your decisions or day-to-day operations of your business, including your sole responsibility for the hiring, wages and other compensation (including benefits), training, supervision and termination of your employees and all other employment and employee related matters?                                                                                                                                                                                                                                                                                                  |  |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| Yes |  |  |
| No |  |  |
| 19. |  |  |
| Do you understand that we are relying on your responses to this questionnaire to help us |  |  |
| determine whether we, and any brokers or consultants that work with us, complied with applicable state |  |  |
| and federal law? |  |  |
| Yes |  |  |
| No |  |  |
| If you have answered No to questions 9, or Yes to any one of questions 10-17, please provide a full |  |  |
| explanation of each answer in the following blank lines. (Attach additional pages, if necessary, and refer to |  |  |
| them below.) If you have answered Yes to question 9, and No to each of questions 10-17, please leave the |  |  |
| following lines blank. |  |  |
|  |  |  |
|  |  |  |
|  |  |  |
| I signed the Franchise Agreement and Addendum (if any) on, 20, and |  |  |
| acknowledge that no Agreement or Addendum is effective until signed and dated by the Franchisor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |
| Please understand that your responses to these questions are important to us and that we will rely |  |  |
| on them. By signing this Questionnaire, you are representing that you have responded truthfully to the above |  |  |
| questions. In addition, by signing this Questionnaire, you also acknowledge that: |  |  |
| A. You recognize and understand that business risks, which exist in connection with the purchase |  |  |
| of any business, make the success or failure of the franchise subject to many variables, including among |  |  |
| other things, your skills and abilities, the hours worked by you, competition, interest rates, the economy, |  |  |
| inflation, franchise location, operation costs, lease terms and costs and the marketplace. You hereby |  |  |
| acknowledge your awareness of and willingness to undertake these business risks. |  |  |
| B. You agree and state that the decision to enter into this business risk is in no manner predicated |  |  |
| upon any oral representation, assurances, warranties, guarantees or promises made by Franchisor or any of |  |  |
| its officers, employees or agents (including the Broker or any other broker) as to the likelihood of success |  |  |
| of the franchise. Except as contained in the Disclosure Document, you acknowledge that you have not |  |  |
| received any information from the Franchisor or any of its officers, employees or agents (including the |  |  |
| Broker or any other broker) concerning actual, projected or forecasted franchise sales, profits or earnings. |  |  |
| If you believe that you have received any information concerning actual, average, projected or forecasted |  |  |
| franchise sales, profits or earnings other than those contained in the Disclosure Document, please describe |  |  |
| those in the space provided below or write "None". |  |  |

C. You further acknowledge that the President of the United States of America has issued Executive Order 13224 (the "Executive Order") prohibiting transactions with terrorists and terrorist organizations and that the United States government has adopted, and in the future may adopt, other anti-terrorism measures (the "Anti-Terrorism Measures"). The Franchisor therefore requires certain certifications that the parties with whom it deals are not directly involved in terrorism. For that reason, you hereby certify that neither you nor any of your employees, agents or representatives, nor any other person or entity associated with you, is:

- (i) a person or entity listed in the Annex to the Executive Order;
- (ii) a person or entity otherwise determined by the Executive Order to have committed acts of terrorism or to pose a significant risk of committing acts of terrorism;
  - (iii) a person or entity who assists, sponsors, or supports terrorists or acts of terrorism; or
  - (iv) owned or controlled by terrorists or sponsors of terrorism.

You further covenant that neither you nor any of your employees, agents or representatives, nor any other person or entity associated with you, will during the term of the Franchise Agreement become a person or entity described above or otherwise become a target of any Anti-Terrorism Measure.

By signing below, you are acknowledging that you understand that your answers are important and that we will rely on them, and that you have responded truthfully to the above questions.

#### NOTE: IF THE RECIPIENT IS A CORPORATION, PARTNERSHIP, OR OTHER ENTITY, EACH OF ITS PRINCIPALS MUST EXECUTE THIS ACKNOWLEDGMENT (Make Additional Copies if Necessary).

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 4

How many Canine Dimensions franchised outlets were reacquired by the franchisor in 2024?

Accepted Answer

|  |  |  |  | Outlets |  |  |  |
|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  | Reacquired |  |  | Outlets at |
|  |  | Start of | Outlets | From | Outlets | Outlets Sold | End of |
| State | Year | Year | Opened | Franchisee | Closed | to Franchisee | Year |
| New Jersey | 2022 | 1 | 0 | 0 | 0 | 1 | 0 |
|  | 2023 | 0 Outlets at | 0 | 0 Outlets Reacquired From Franchisee | 0 | 0 | 0 Outlets at |
|  |  | Start of | Outlets |  | Outlets | Outlets Sold | End of |
| State | Year | Year | Opened |  | Closed | to Franchisee | Year |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Outlets | 2022 | 1 | 0 | 0 | 0 | 1 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 |Table No.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 5

How many Canine Dimensions outlets were added in total during 2023?

Accepted Answer

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 6

How many Canine Dimensions outlets ceased operations for other reasons in total during 2022?

Accepted Answer

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  |  | Opera- | Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| California | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 2 | 0 | 0 | 0 |
| Colorado | 2022 | 3 | 0 | 0 | 0 | 0 | 1 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Connecticut | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 Outlets at | 0 | 0 | 0 | 0 | 0 Ceased Opera- | 3 Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| Illinois | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 2 | 0 | 0 | 1 |
| Kansas | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Missouri | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Nevada | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 4 | 1 | 0 | 0 | 0 | 0 | 5 |
|  | 2023 | 5 | 0 | 0 | 0 | 0 | 1 | 4 |
|  | 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| New York | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| North Carolina | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Pennsylvania | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Tennessee | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Texas | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 1 | 0 | 0 | 1 |
| Vermont | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
| Virginia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Total Outlets | 2022 | 26 | 1 | 0 | 0 | 0 | 1 | 26 |
|  | 2023 | 26 | 4 | 0 | 0 | 0 | 0 | 30 |
|  | 2024 | 30 | 0 | 1 | 8 | 0 | 0 | 21 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 7

How many Canine Dimensions outlets had their terms not renewed in total during 2024?

Accepted Answer

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  |  | Opera- | Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| California | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 2 | 0 | 0 | 0 |
| Colorado | 2022 | 3 | 0 | 0 | 0 | 0 | 1 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Connecticut | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 Outlets at | 0 | 0 | 0 | 0 | 0 Ceased Opera- | 3 Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| Illinois | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 2 | 0 | 0 | 1 |
| Kansas | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Missouri | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Nevada | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 4 | 1 | 0 | 0 | 0 | 0 | 5 |
|  | 2023 | 5 | 0 | 0 | 0 | 0 | 1 | 4 |
|  | 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| New York | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| North Carolina | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Pennsylvania | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Tennessee | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Texas | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 1 | 0 | 0 | 1 |
| Vermont | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
| Virginia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Total Outlets | 2022 | 26 | 1 | 0 | 0 | 0 | 1 | 26 |
|  | 2023 | 26 | 4 | 0 | 0 | 0 | 0 | 30 |
|  | 2024 | 30 | 0 | 1 | 8 | 0 | 0 | 21 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 8

What are the specific types of breaches that allow a 30-day cure period under the Canine Dimensions Franchise Agreement?

Accepted Answer

| Provision                                                 | Section in Franchise | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------------------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                           | Agreement               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| g. "Cause" defined - curable defaults                  | Article 14              | Except as described in (h), you have 30 days after notice to cure breaches relating to your: (a) failure to pay any amounts due to us; (b) failure, refusal, or neglect to promptly submit financial or other information we require; (c) fail, refuse, or neglect to spend your required local advertising expenditure; (d) fail, refuse, or neglect to obtain our prior written approval or consent when our consent is required; (e) violation of any provision of the Franchise Agreement concerning the use and protection of the Marks or Confidential Information. You will have 30 days after notice to cure any breaches of the                                                                                                                                                                                                                                                                 |
| h. "Cause" defined – non curable defaults              | Article 14              | Franchise Agreement not listed above or in Section 14.3 Failure to open; abandoning the Franchised Business; conviction of a felony, fraud, a crime involving moral turpitude, theft, animal cruelty, burglary; threat to public health or safety; unapproved transfer; failure to comply with in-term covenants; failure to satisfactorily complete training program; disclosure of confidential information; repeated defaults; bankruptcy, insolvency or appointment of receiver; and others. sheriff, marshal, or constable against your interest in such property; and others.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)

Question 9

What is the total number of classroom training hours provided by Canine Dimensions?

Accepted Answer

| SUBJECT | HOURS OF CLASSROOM TRAINING | HOURS OF ON THE JOB TRAINING | LOCATION |
|---|---|---|---|
| Case Studies | 20 | 6 | Bonita Springs, FL |
| Canine Diet and Nutrition | 2 | 0 | Bonita Springs, FL |
| Dog Psychology and Body Language | 6 | 4 | Bonita Springs, FL |
| Local Sales and Marketing Strategies | 3 | 0 | Bonita Springs, FL |
| Association Memberships | 2 | 0 | Bonita Springs, FL |
| Observation of Skills and Testing | 5 | 30 | Bonita Springs, FL |
| Totals | 38 | 40 | Bonita Springs, FL |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)

Question 10

What was the total number of Canine Dimensions franchised outlets added in 2023?

Accepted Answer

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 11

What was the total number of Canine Dimensions franchised outlets at the end of 2023?

Accepted Answer

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 12

What was the total number of Canine Dimensions franchised outlets at the start of 2024?

Accepted Answer

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 13

What is the total number of hours of on-the-job training provided by Canine Dimensions?

Accepted Answer

| SUBJECT | HOURS OF CLASSROOM TRAINING | HOURS OF ON THE JOB TRAINING | LOCATION |
|---|---|---|---|
| Case Studies | 20 | 6 | Bonita Springs, FL |
| Canine Diet and Nutrition | 2 | 0 | Bonita Springs, FL |
| Dog Psychology and Body Language | 6 | 4 | Bonita Springs, FL |
| Local Sales and Marketing Strategies | 3 | 0 | Bonita Springs, FL |
| Association Memberships | 2 | 0 | Bonita Springs, FL |
| Observation of Skills and Testing | 5 | 30 | Bonita Springs, FL |
| Totals | 38 | 40 | Bonita Springs, FL |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)

Question 14

What is the total number of new Canine Dimensions franchised outlets projected to open in the next fiscal year across all states listed?

Accepted Answer

|  | Franchise Agreements Signed But Outlet Not Opened | Projected New Franchised | Projected New Company- |
|---|---|---|---|
|  |  | Outlets in | Owned Outlets in the Next |
| State |  | the Next Fiscal Year | Fiscal Year |
| California | 0 | 2 | 0 |
| Florida | 0 | 1 | 0 |
| New York | 0 | 1 | 0 |
| Ohio | 0 | 1 | 0 |
| Texas | 0 | 1 | 0 |
| Totals | 0 | 6 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 15

What was the total number of Canine Dimensions outlets at the end of 2024?

Accepted Answer

4

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

#### Table No. 2 Transfers of Franchised Outlets For Years 2022-2024

| State | Year | Number of Transfers |
|---|---|---|
| Colorado | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Totals | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
## Table No. 3 Status of Franchised Outlets

|  |  |  |  |  |  |  | Ceased |  |
|---|---|---|---|---|---|---|---|---|
|  |  | Outlets at |  |  |  |  | Opera- | Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| California | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 2 | 0 | 0 | 0 |
| Colorado | 2022 | 3 | 0 | 0 | 0 | 0 | 1 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Connecticut | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 1 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 Outlets at | 0 | 0 | 0 | 0 | 0 Ceased Opera- | 3 Outlets |
|  |  | Start of the | Outlets | Termina- | Non- | Reacquired by | tions-Other | at End of |
| State | Year | Year | Added | tions | Renewals | Franchisor | Reasons | the Year |
| Illinois | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 2 | 0 | 0 | 1 |
| Kansas | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Missouri | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Nevada | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| New Jersey | 2022 | 4 | 1 | 0 | 0 | 0 | 0 | 5 |
|  | 2023 | 5 | 0 | 0 | 0 | 0 | 1 | 4 |
|  | 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 |
| New York | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
|  | 2024 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| North Carolina | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Pennsylvania | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Tennessee | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Texas | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 1 | 0 | 0 | 1 |
| Vermont | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
| Virginia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Total Outlets | 2022 | 26 | 1 | 0 | 0 | 0 | 1 | 26 |
|  | 2023 | 26 | 4 | 0 | 0 | 0 | 0 | 30 |
|  | 2024 | 30 | 0 | 1 | 8 | 0 | 0 | 21 |Table No.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 16

What was the total number of Canine Dimensions outlets at the start of 2022?

Accepted Answer

| Outlet Type   | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---------------|------|-------------------------------------|-----------------------------------|------------|
| Franchised    | 2022 | 26                                  | 26                                | 0          |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |
| Company-Owned | 2022 | 1                                   | 0                                 | -1         |
|               | 2023 | 0                                   | 0                                 | 0          |
|               | 2024 | 0                                   | 0                                 | 0          |
| Total Outlets | 2022 | 27                                  | 26                                | -1         |
|               | 2023 | 26                                  | 30                                | +4         |
|               | 2024 | 30                                  | 21                                | -9         |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 17

What is the total projected number of new Canine Dimensions franchised outlets expected to open in the next fiscal year across all listed states?

Accepted Answer

4

|  | Franchise Agreements Signed But Outlet Not Opened | Projected New Franchised | Projected New Company- |
|---|---|---|---|
|  |  | Outlets in | Owned Outlets in the Next |
| State |  | the Next Fiscal Year | Fiscal Year |
| California | 0 | 2 | 0 |
| Florida | 0 | 1 | 0 |
| New York | 0 | 1

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)

Question 18

What is the total projected number of new Canine Dimensions franchised outlets to open in the next fiscal year?

Accepted Answer

|  | Franchise Agreements Signed But Outlet Not Opened | Projected New Franchised | Projected New Company- |
|---|---|---|---|
|  |  | Outlets in | Owned Outlets in the Next |
| State |  | the Next Fiscal Year | Fiscal Year |
| California | 0 | 2 | 0 |
| Florida | 0 | 1 | 0 |
| New York | 0 | 1 | 0 |
| Ohio | 0 | 1 | 0 |
| Texas | 0 | 1 | 0 |
| Totals | 0 | 6 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 19

Is the Canine Dimensions Franchise Disclosure Document automatically effective in all states, or are there specific requirements for each state?

Accepted Answer

TS | 2024 | 2023 |#### **EXHIBIT I**

## FRANCHISE DISCLOSURE DOCUMENT RECEIPTS AND STATE EFFECTIVE DATES

## STATE EFFECTIVE DATES

The following states require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:

| Cash | 457,452 | 406,640 |
|---|---|---|
| FIXED ASSETS |  |  |
| Automobile | 31,923 | 31,923 |
| Less: Accumulated Depreciation | (25,714) | (23,271) |
| Net Fixed Assets | 6,209 | 8,652 |
Other states may require registration, filing, or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportunities or sellerassisted marketing plans.

#### RECEIPT

This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.

Source: Item 23 — RECEIPTS (FDD pages 36–148)

Question 20

How does the Canine Dimensions initial franchise fee (Item 5) compare to the total estimated initial investment (Item 7), and what percentage does it represent?

Accepted Answer

| Investment |  | Amount- Range | Method of | When Payable |  | To Whom Payment is |
|---|---|---|---|---|---|---|
|  |  | Estimated | Payment |  |  | Made |
| Initial Franchise Fee | $45,000 | Lump Sum (ACH) |  | Upon signing of the Franchise Agreement | Us |  |
| Training and Protected Territory Fee | $12,500 | Lump Sum (ACH) |  | Upon signing of the Franchise Agreement | Us |  |
| Travel and Living | $1,750 to $2,450 | As Incurred |  | As Arranged | Outside Suppliers |  |
| Expenses While Attending |  |  |  |  |  |  |
| Training |  |  |  |  |  |  |
| Inventory for resale | $5,000 | Lump Sum (ACH) |  | Prior to Opening | Us |  |
| Opening supply of marketing and training materials | $3,000 | Lump Sum (ACH) |  | Prior to Opening | Us |  |
| Advertising (Note 1) | $3,000 to $4,500 | Lump Sum (ACH) |  | As Agreed | Us |  |
| Training Equipment | $200 - $400 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Computer and Office | $800 to $1,500 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Equipment (Notes 2 and 3) |  |  |  |  |  |  |
| Memberships (Note 4) | $200 to $400 | As Incurred |  | As Arranged | Outside Suppliers |  |
| Insurance | $1,000 to $2,000 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Additional Funds—(first | $1,000 to $3,000 | As Incurred |  | As Agreed | Outside Suppliers |  |
| three months) (Note 5) |  |  |  |  |  |  |
| TOTAL ESTIMATED INITIAL INVESTMENT (NOTE 6) | $73.450 – $79,750 |  |  |  |  |  |

Question 21

How does the Canine Dimensions initial franchise fee in Item 5 compare to the training and protected territory fee also mentioned in Item 5?

Accepted Answer

The initial franchise fee is \$45,000 ("Initial Franchise Fee"). The Initial Franchise Fee is payable in a lump sum upon execution of the Franchise Agreement. It is fully earned upon receipt and nonrefundable, except that if you do not satisfactorily complete our initial training program, we will terminate the Franchise Agreement and refund your Initial Franchise Fee, less our reasonable expenses.

#### Training and Protected Territory Fee

You must also pay to us a training and Protected Territory fee of \$12,500 for the initial training program and the identification of your Protected Territory to bring a total of two (2) people to training. You must also pay this fee if you are purchasing a franchise from an existing franchisee of ours. This fee is mandatory and is not refundable under any circumstances.

#### Marketing and Training Materials

You must also pay us \$3,000 for an initial supply of marketing and training materials.

Question 22

How does the initial franchise fee for Canine Dimensions (Item 5) relate to the ongoing fees that the franchisee will be required to pay (Item 6)?

Accepted Answer

#### ITEM 5 INITIAL FEES

#### Initial Franchise Fee

The initial franchise fee is \$45,000 ("Initial Franchise Fee"). The Initial Franchise Fee is payable in a lump sum upon execution of the Franchise Agreement. It is fully earned upon receipt and nonrefundable, except that if you do not satisfactorily complete our initial training program, we will terminate the Franchise Agreement and refund your Initial Franchise Fee, less our reasonable expenses.

#### Training and Protected Territory Fee

You must also pay to us a training and Protected Territory fee of \$12,500 for the initial training program and the identification of your Protected Territory to bring a total of two (2) people to training. You must also pay this fee if you are purchasing a franchise from an existing franchisee of ours. This fee is mandatory and is not refundable under any circumstances.

#### Marketing and Training Materials

You must also pay us \$3,000 for an initial supply of marketing and training materials. You must also pay us at least \$1,000 per month for internet advertising, payable on the first day of each month. This

amount can be raised monthly at your discretion.

#### Inventory for Resale

You must also pay us \$5,000 for an initial supply of inventory items that you will resell to clients.

Except for the Initial Franchise Fee, none of the initial fees are refundable under any circumstances. These fees are uniform to all franchisees under this offering.

Question 23

What is the relationship between the initial franchise fee for Canine Dimensions in Item 5 and the estimated initial investment range in Item 7?

Accepted Answer

| Investment |  | Amount- Range |
|---|---|---|
| Initial Franchise Fee | $45,000 |

Question 24

What are the specific deadlines for payments related to the Canine Dimensions franchise, considering the initial fees in Item 5 and any other fees outlined in Item 6?

Accepted Answer

If Canine Dimensions, LLC offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Under Iowa or New York law, if applicable, Canine Dimensions, LLC must provide this disclosure document to you at your 1st personal meeting to discuss the franchise or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan requires Canine Dimensions, LLC to give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.

You are required to order from us and pay for an initial inventory of authorized products at our then-current prices prior to commencing operating your Franchised Business, and we will send you the initial inventory upon receipt of payment.

Franchisee have at least one (1) mailbox at Franchisor's @CanineDimensions.com domain, and must pay Franchisor its then-current annual fee per mailbox for maintenance.

Franchisee must pay its out-of-pocket costs related to attending such training for itself and any additional trainees, like travel, lodging, meals and wages.

Franchisee must pay to Franchisor, at the time and in the amount specified by Franchisor, a fee for Franchisee's representatives to attend the annual conference. All of the travel and living expenses of the attendees will be borne by Franchisee.

These advertising fees are based on mandatory payments of $1,000 per month for internet advertising and are paid directly to us. Some franchisees choose (but are not required) to spend more on advertising and the higher amount reflects a spend of $1,500 per month.

Payments you make to us and our affiliates are not refundable under any circumstances.

Question 25

What is the total estimated initial investment for a Canine Dimensions franchise, considering the fees outlined in Items 5 and 7?

Accepted Answer

| Investment |  | Amount- Range | Method of | When Payable |  | To Whom Payment is |
|---|---|---|---|---|---|---|
|  |  | Estimated | Payment |  |  | Made |
| Initial Franchise Fee | $45,000 | Lump Sum (ACH) |  | Upon signing of the Franchise Agreement | Us |  |
| Training and Protected Territory Fee | $12,500 | Lump Sum (ACH) |  | Upon signing of the Franchise Agreement | Us |  |
| Travel and Living | $1,750 to $2,450 | As Incurred |  | As Arranged | Outside Suppliers |  |
| Expenses While Attending |  |  |  |  |  |  |
| Training |  |  |  |  |  |  |
| Inventory for resale | $5,000 | Lump Sum (ACH) |  | Prior to Opening | Us |  |
| Opening supply of marketing and training materials | $3,000 | Lump Sum (ACH) |  | Prior to Opening | Us |  |
| Advertising (Note 1) | $3,000 to $4,500 | Lump Sum (ACH) |  | As Agreed | Us |  |
| Training Equipment | $200 - $400 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Computer and Office | $800 to $1,500 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Equipment (Notes 2 and 3) |  |  |  |  |  |  |
| Memberships (Note 4) | $200 to $400 | As Incurred |  | As Arranged | Outside Suppliers |  |
| Insurance | $1,000 to $2,000 | As Incurred |  | As Agreed | Outside Suppliers |  |
| Additional Funds—(first | $1,000 to $3,000 | As Incurred |  | As Agreed | Outside Suppliers |  |
| three months) (Note 5) |  |  |  |  |  |  |
| TOTAL ESTIMATED INITIAL INVESTMENT (NOTE 6) | $73.450 – $79,750 |  |  |  |  |  |

Question 26

What types of businesses will a Canine Dimensions franchise compete with?

Accepted Answer

The market for the services provided by a Canine Dimensions Business is developing and includes anyone who owns a dog in an urban or suburban residential area. You will experience competition from franchised operations, independent dog trainers, dog obedience companies, kennels, kennel clubs, chain grooming and pet stores, some of which may be national or regional in scope, and some veterinary offices that provide canine training. This business is year-round.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–9)

Question 27

Is a Canine Dimensions franchisee allowed to establish a website without prior written approval from Canine Dimensions?

Accepted Answer

signs, memos, stationery, business cards, advertising material, forms and all other objects and supplies using the Marks. All advertising, publicity, point of sale materials, signs, decorations, furnishings, equipment, or other materials employing the words "Canine Dimensions" shall be in accordance with this Agreement and the Manual, and Franchisee shall obtain Franchisor's approval prior to such use.
- 7.2.3 Unless otherwise authorized or required by Franchisor, Franchisee will operate and advertise the Franchised Business only under the name "Canine Dimensions" without prefix or suffix.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 27–28)

Question 28

Can a Canine Dimensions franchisee use the Marks through the Internet without prior written approval?

Accepted Answer

signs, memos, stationery, business cards, advertising material, forms and all other objects and supplies using the Marks. All advertising, publicity, point of sale materials, signs, decorations, furnishings, equipment, or other materials employing the words "Canine Dimensions" shall be in accordance with this Agreement and the Manual, and Franchisee shall obtain Franchisor's approval prior to such use.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 27–28)

Question 29

If the first day of the month is not a business day, when is the Canine Dimensions monthly advertising fee due?

Accepted Answer

of the goodwill and public image of the System, the parties agree as follows:

#### 11.1 Advertising Expenditures

- 11.1.1 Franchisee must pay to Franchisor a monthly advertising fee equal to One Thousand Dollars (\$1,000), which will be spent on an Internet Advertising program administered by the Franchisor. Such amount is payable on the first (1st) day of each month in the manner set forth in Section 5.5, and will be used for an Internet Advertising Fund to be administered by the Franchisor, as described in Sect

Source: Item 22 — CONTRACTS (FDD page 36)

Question 30

When is interest payable to Canine Dimensions?

Accepted Answer

| Name of Fee                                   | Amount                                                                                                                                                   | Due Date                                                                                                              | Remarks                                                                                                                                                                                                                               |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Interest | 1.5% of the delinquent amount or the highest rate permitted by law, whichever is less. | Payable when any payment is overdue. | Payable only if you do not pay your bills on time. Interest begins from the date of underpayment. |

Source: Item 6 — OTHER FEES (FDD pages 10–13)

Question 31

For Canine Dimensions, is it acceptable for a broker to provide earnings projections outside of the FDD?

Accepted Answer

|        |                                  | 11. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any statement or promise regarding the amount of money you may earn in operating the franchised business that is contrary to or different from the information contained in the Disclosure Document?                                                                               |
|--------|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  |  | 12. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement or promise concerning the total amount of revenue the Franchised Business will generate, that is |
|  |  | contrary to or different from the information contained in the Disclosure Document? |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  |  | 13. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement or promise regarding the costs you may incur in operating the Franchised Business that is contrary |
|  |  | to or different from the information contained in the Disclosure Document? |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  | operating a Franchised Business? | 14. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement or promise concerning the likelihood of success that you should or might expect to achieve from |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  |  | 15. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement, promise or agreement concerning the advertising, marketing, training, support service or |
|  |  | assistance that the Franchisor will furnish to you that is contrary to, or different from, the information |
|  |  | contained in the Disclosure Document or franchise agreement? |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|        | this franchise prior to today?   | 16. Have you entered into any binding agreement with the Franchisor concerning the purchase of                                                                                                                                                                                                                                                                                      |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
| today? |                                  | 17. Have you paid any money to the Franchisor concerning the purchase of this franchise prior to                                                                                                                                                                                                                                                                                    |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 32

According to Maryland Franchise Law, can a Canine Dimensions franchisee litigate with the franchisor in Maryland, despite the Franchise Agreement's arbitration clause?

Accepted Answer

- 5.

Item 17 of the Disclosure Document is amended to state that the Franchise Agreement requires binding arbitration, the site of which is in the State of Florida, the costs of which are borne by the parties equally and any issues not decided by arbitration may be brought in a court of competent jurisdiction.

However, according to Section 14-216(c)(25) of the Maryland Franchise Registration and Disclosure Law, a franchisee is permitted to enter into litigation with the Franchisor in the State of Maryland, notwithstanding the language in the Franchise Agreement.

The appropriate sections of the Franchise Agreement are amended accordingly.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 33

According to North Carolina law, what action can a Canine Dimensions franchisee take if the seller fails to deliver necessary products, equipment, or supplies within 45 days of the stated delivery date?

Accepted Answer

If the seller fails to deliver the product(s), equipment or supplies necessary to begin substantial operation of the business within 45 days of the delivery date stated in your contract, you may notify the seller in writing and demand that the contract be cancelled. (N.C.G.S. §66-95)

Source: Item 22 — CONTRACTS (FDD page 36)

Question 34

According to North Carolina law, what is the dependency for a Canine Dimensions franchisee to cancel their contract due to non-delivery of products, equipment, or supplies?

Accepted Answer

If the seller fails to deliver the product(s), equipment or supplies necessary to begin substantial operation of the business within 45 days of the delivery date stated in your contract, you may notify the seller in writing and demand that the contract be cancelled. (N.C.G.S. §66-95)

Source: Item 22 — CONTRACTS (FDD page 36)

Question 35

According to South Carolina law, what recourse do I have if Canine Dimensions fails to deliver the necessary products, equipment, or supplies within 45 days of the delivery date stated in my contract?

Accepted Answer

If the seller fails to deliver the product, equipment or supplies necessary to begin substantial operation of the business within forty-five days of the delivery date stated in your contract, you may notify the seller in writing and demand that the contract be cancelled.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 36

In addition to the listed agents, could there be additional agents appointed in some of the listed states for Canine Dimensions?

Accepted Answer

Listed here are the names, addresses and telephone numbers of the state agencies having responsibility for franchising disclosure/registration laws and for service of process. We may not yet be registered to sell franchises in any or all of these states.

If a state is not listed, we have not appointed an agent for service of process in that state in connection with the requirements of franchise laws. There may be states in addition to those listed below in which we have appointed

an agent for service of process. There may also be additional agents appointed in some of the states listed.

Source: Item 23 — RECEIPTS (FDD pages 36–148)

Question 37

How does the amendment to Exhibit G of the Canine Dimensions FDD affect the prospective franchisee's rights under Maryland Franchise Law?

Accepted Answer

ng the language in the Franchise Agreement. The appropriate sections of the Franchise Agreement are amended accordingly.
- 6. Exhibit G to the FDD is hereby amended to provide that all representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- 7. The Franchise Agreement is hereby amended to state that any representations which require a prospective franchisee to assent to any general release, estoppel or waiver of liability as a condition of purchasing a franchise are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

- 8. The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
- 9. The registered agent authorized to receive process in Maryland is the Maryland Securities Commissioner, 200 St. Paul Place, Baltimore, Maryland 21202-2020.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

The undersigned do hereby acknowledge receipt of this addendum.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 38

Besides the listed states, could there be other states where Canine Dimensions has appointed an agent for service of process?

Accepted Answer

If a state is not listed, we have not appointed an agent for service of process in that state in connection with the requirements of franchise laws. There may be states in addition to those listed below in which we have appointed

an agent for service of process. There may also be additional agents appointed in some of the states listed.

Source: Item 23 — RECEIPTS (FDD pages 36–148)

Question 39

Besides Workers' Compensation, what other employer's liability insurance might be required for a Canine Dimensions franchise?

Accepted Answer

(4) employer's liability of \$1,000,000 per incident and Workers' Compensation or other employer's liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Franchised Business is located;

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)

Question 40

Is the cancellation right for Canine Dimensions franchisees dependent on any specific conditions other than the signing date in Ohio?

Accepted Answer

[Item 22: CONTRACTS]

You may cancel this transaction, without penalty or obligation, within three business days from the above date. If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence or business address, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.

If you do not agree to return the goods to the seller or if the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to Phil Guida at 23208 Sanabria Loop, Bonita Springs, Florida 34135, phone (888) 281-3647 or an e-mail to phil@caninedimensions.com, not later than midnight of the third business day after the Effective Date.

I hereby cancel this transaction.

Franchisee: By: Print Name: Its: Date:

Source: Item 22 — CONTRACTS (FDD page 36)

Question 41

How does COMAR 02.02.08.16L affect the general release required for renewal or assignment/transfer in the Canine Dimensions Disclosure Document?

Accepted Answer

According to COMAR 02.02.08.16L, Item 17 of the Disclosure Document shall be amended at the sections dealing with the issuance of general releases to the effect that the general release required as a condition of renewal and/or assignment/transfer are not intended to nor shall they act as a release, estoppel or waiver of any liability under the Maryland Franchise Registration and Disclosure Law.

The appropriate sections of the Franchise Agreement are deemed to be amended accordingly.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 42

What conditions must a Canine Dimensions franchisee meet to be eligible to acquire a successor franchise term?

Accepted Answer

#### 2.2 Right to Acquire a Successor Franchise

After the expiration of the Term, Franchisee may, at its option, acquire one (1) additional successor franchise term of five (5) years each, subject to the following conditions, which must be met prior to obtaining a successor franchise:

- 2.2.1 Franchisee must give Franchisor written notice of Franchisee's election to obtain a successor franchise not less than six (6) months nor more than twelve (12) months prior to the end of the Term or first successor franchise term;
- 2.2.2 Franchisee must not be in default of any provision of this Agreement, any amendment or successor to this Agreement, or any other agreement between Franchisee and Franchisor or

its subsidiaries and affiliates; and Franchisee must have substantially complied with all the provisions and conditions of such agreements during their terms;

Source: Item 22 — CONTRACTS (FDD page 36)

Question 43

When considering a Canine Dimensions franchise, what should I do if I don't understand the Franchise Agreement, addendums, or related agreements?

Accepted Answer

|    | 1. Are you seeking to enter into the Franchise Agreement in connection with a purchase or transfer of an existing Franchised Business from an existing Franchisee? |  |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
|  | Yes |  |
|  | No |  |
| 20 | 2. I had my first face-to-face meeting with a Franchisor representative on,                                                                                           |  |
|  | 3. Have you received and personally reviewed the Franchise Agreement, each addendum, and/or |  |
|  | related agreement provided to you? |  |
|  | Yes |  |
|  | No |  |
|  | 4. Do you understand all of the information contained in the Franchise Agreement, each |  |
|  | addendum, and/or related agreement provided to you? |  |
|  | Yes |  |
|  | No |  |

If no, what parts of the Franchise Agreement, any Addendum, and/or related agreement do you not understand? (Attach additional pages, if necessary.) provided to you? 5. Have you received and personally reviewed the Franchisor's Disclosure Document that was Yes No 6. Did you sign a receipt for the Disclosure Document indicating the date you received it? Yes No 7. Do you understand all of the information contained in the Disclosure Document and any state specific Addendum to the Disclosure Document? Yes No additional pages, if necessary.) If No, what parts of the Disclosure Document and/or Addendum do you not understand? (Attach 8. Have you discussed the benefits and risks of establishing and operating a Franchised Business with an attorney, accountant, or other professional advisor, or made the decision not to consult with one? Yes No 9.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 44

What is the dependency between the Federal Arbitration Act and the enforceability of the forum selection requirement in the Canine Dimensions Franchise Agreement?

Accepted Answer

6. The franchise agreement requires binding arbitration. The arbitration will occur in Florida with the costs being borne by the franchisee and franchisor. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California. Business and Professions Code Section 20040.5 relating to forum selection clauses restricting venue outside the state of California or arbitration may be preempted by the Federal Arbitration Act. Section 20040.5 may still apply to any provision relating to judicial proceedings. A binding arbitration provision may not be enforceable under generally applicable contract defenses, such as fraud, duress, or unconscionability.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 45

What is the effect of the amendment to the Canine Dimensions Franchise Agreement regarding general releases on the franchisee's ability to pursue claims under Maryland law?

Accepted Answer

ng the language in the Franchise Agreement. The appropriate sections of the Franchise Agreement are amended accordingly.
- 6. Exhibit G to the FDD is hereby amended to provide that all representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
- 7. The Franchise Agreement is hereby amended to state that any representations which require a prospective franchisee to assent to any general release, estoppel or waiver of liability as a condition of purchasing a franchise are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

- 8. The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
- 9. The registered agent authorized to receive process in Maryland is the Maryland Securities Commissioner, 200 St. Paul Place, Baltimore, Maryland 21202-2020.

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

The undersigned do hereby acknowledge receipt of this addendum.

| Addendum dated this day of, 20            | IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this |
|-------------------------------------------|--------------------------------------------------------------------------------------|
| ATTEST CANINE DIMENSIONS FRANCHISING, LLC |  |
| Witness Name: | By: Title: FRANCHISEE: |
| Witness |  |
#### ADDENDUM TO CANINE DIMENSIONS FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF MINNESOTA

Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all franchises offered and sold in the State of Minnesota:

- 1.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 46

What is the effect of the Franchisee's waiver of California Civil Code Section 1542 on claims against Canine Dimensions?

Accepted Answer

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

- 3.2 With respect to those Claims being released pursuant to this Mutual General Release Agreement, Franchisee, for itself and its Constituents, acknowledges that it is releasing unknown claims and waives all rights it has or may have under California Civil Code Section 1542 or any other statute or common law principle of similar effect. For purposes of this Section 3, Franchisee shall be considered to be a creditor of the Designees, and each of them.
- 3.3 Franchisee acknowledges that this general release extends to claims which Franchisee does not know or suspect to exist in favor of Franchisee at the time of executing this Mutual General Release Agreement, which if known by Franchisee may have materially affected its decision to enter into this Mutual General Release Agreement. It is understood by Franchisee that the facts in respect of which this Mutual General Release Agreement is given may hereafter turn out to be other than or different from the facts in that connection known or believed to be true. Franchisee therefore, expressly assumes the risk of the facts turning out to be so different and agrees that this Mutual General Release Agreement shall be in all respects effective and not subject to termination or rescission by any such difference in facts.
- 4. By executing this Mutual General Release Agreement, Canine Dimensions and Franchisee, for themselves and their respective successors, represent and warrant that their representations herein are true and correct and that each of them has the right and authority to enter into and to accept the terms and covenants of this Mutual General Release Agreement, and that no third party has or claims an interest in any claim released by Paragraph 1 of this Mutual General Release Agreement.
- 5. Canine Dimensions and Franchisee, for themselves and their respective Designees, acknowledge that Paragraphs 1 and 4 of this Mutual General Release Agreement shall be a complete defense to any claim that is subject to the terms thereof; consent to the entry of a temporary or permanent injunction, whether affirmative or negative, to prevent or end any breach hereof; and agree to indemnify each other and their successors for any and all costs and expenses incurred as a result of their breach of Paragraphs 1 and 3 hereof, including reasonable attorney's fees.
- 6. This Mutual General Release Agreement represents the complete, integrated, and entire agreement between the parties, and may not be modified except in writing signed by the parties.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 47

What is the effect of the Canine Dimensions Mutual General Release Agreement on claims that would have materially affected settlement if known?

Accepted Answer

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

- 3.2 With respect to those Claims being released pursuant to this Mutual General Release Agreement, Franchisee, for itself and its Constituents, acknowledges that it is releasing unknown claims and waives all rights it has or may have under California Civil Code Section 1542 or any other statute or common law principle of similar effect. For purposes of this Section 3, Franchisee shall be considered to be a creditor of the Designees, and each of them.
- 3.3 Franchisee acknowledges that this general release extends to claims which Franchisee does not know or suspect to exist in favor of Franchisee at the time of executing this Mutual General Release Agreement, which if known by Franchisee may have materially affected its decision to enter into this Mutual General Release Agreement. It is understood by Franchisee that the facts in respect of which this Mutual General Release Agreement is given may hereafter turn out to be other than or different from the facts in that connection known or believed to be true. Franchisee therefore, expressly assumes the risk of the facts turning out to be so different and agrees that this Mutual General Release Agreement shall be in all respects effective and not subject to termination or rescission by any such difference in facts.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 48

What factors does Canine Dimensions consider when varying the training program?

Accepted Answer

We reserve the right to vary our training program based on the prior experience of the trainee(s). After completion of the training session, training and assistance will limited to telephone assistance, email assistance and/or on-site assistance as we determine in our reasonable business judgment. If you request additional training on-site, or if we determine that you would benefit from additional on-site training, you must pay our then-current per diem rate per trainer, and reimburse our trainer's costs for providing the onsite training, including travel, lodging and meals. Currently, our per-diem daily trainer rate is \$350 per trainer.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)

Question 49

Does the Canine Dimensions FDD state that my contact information may be disclosed to other buyers if I leave the franchise system?

Accepted Answer

| If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system. |
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Source: Item 22 — CONTRACTS (FDD page 36)

Question 50

Does the Canine Dimensions franchise agreement allow the Franchisor to impose additional requirements beyond those listed for transfer approval?

Accepted Answer

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 51

Does the Canine Dimensions Franchise Agreement provide a cure period for all types of defaults?

Accepted Answer

| Provision                                                 | Section in Franchise | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------------------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                           | Agreement               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| g. "Cause" defined - curable defaults                  | Article 14              | Except as described in (h), you have 30 days after notice to cure breaches relating to your: (a) failure to pay any amounts due to us; (b) failure, refusal, or neglect to promptly submit financial or other information we require; (c) fail, refuse, or neglect to spend your required local advertising expenditure; (d) fail, refuse, or neglect to obtain our prior written approval or consent when our consent is required; (e) violation of any provision of the Franchise Agreement concerning the use and protection of the Marks or Confidential Information. You will have 30 days after notice to cure any breaches of the                                                                                                                                                                                                                                                                 |
| h. "Cause" defined – non curable defaults              | Article 14              | Franchise Agreement not listed above or in Section 14.3 Failure to open; abandoning the Franchised Business; conviction of a felony, fraud, a crime involving moral turpitude, theft, animal cruelty, burglary; threat to public health or safety; unapproved transfer; failure to comply with in-term covenants; failure to satisfactorily complete training program; disclosure of confidential information; repeated defaults; bankruptcy, insolvency or appointment of receiver; and others. sheriff, marshal, or constable against your interest in such property; and others.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)

Question 52

Does the Canine Dimensions Franchise Agreement's arbitration clause prevent a franchisee from filing a lawsuit in Maryland claiming a violation of Maryland Franchise Law?

Accepted Answer

The appropriate sections of the Franchise Agreement are amended accordingly.

- 6.

Exhibit G to the FDD is hereby amended to provide that all representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

- 7.

The Franchise Agreement is hereby amended to state that any representations which require a prospective franchisee to assent to any general release, estoppel or waiver of liability as a condition of purchasing a franchise are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

- 8. The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 53

Is a Canine Dimensions franchisee allowed to deviate from the franchisor's standards and specifications for services and products?

Accepted Answer

#### RECITALS

- A. Franchisor has developed and owns a system (the "System") relating to the establishment, development, and operation of franchises which provide in-home dog training, behavior modification and consulting services to dog owners, and which may also offer boarding, board and train, group lessons, and other complementary products.
- B. Franchisor identifies the System by means of certain trade names, service marks, trademarks, and indicia of origin, including but not limited to the mark and logo "Canine Dimensions", and such other trade names, service marks, and trademarks as are now designated (and may later be designated by Franchisor in writing) for use in connection with the System (the "Marks").
- C. Franchisee desires to operate a franchise under the System and wishes to obtain a franchise from Franchisor for that purpose, as well as to receive the training and other assistance provided by Franchisor, and Franchisee understands and acknowledges the importance of operating the franchised business in conformity with Franchisor's standards and specifications.

In consideration of the undertakings and commitments of each party to the other party in this Agreement, the parties agree as follows:

#### 1. GRANT

#### 1.1 Franchised Business

Franchisor grants to Franchisee, upon the terms and conditions herein contained, the right, license, and privilege, and Franchisee undertakes the obligation, to operate a Canine Dimensions franchise (the "Franchise" or "Franchised Business") and to use solely in connection with it the Marks, the Authorized Products and Services, and the System, as they may be changed, improved, and further developed from time to time, only from the Approved Location.

#### 1.2 Approved Location

The street address of Franchisee's approved location is written on Schedule A to this Agreement (the "Approved Location"), which is Franchisee's home. Franchisee shall not relocate the Franchised Business without the express prior written consent of Franchisor. Franchisee's new location must be within its Protected Territory (as described in Section 1.3 below), except that if Franchisee chooses to move its home to a location outside of the Protected Territory, Franchisor may require Franchisee to obtain rented space within the Protected Territory from which to operate the Franchised Business.

#### 1.3 Territorial Limitations

During the Term, Franchisor will not establish, nor license another to establish, a Canine Dimensions franchise under the System and Marks that operates from or at any location within the Protected Territory set forth in Schedule A hereto (the "Protected Territory"), without Franchisee's

prior written consent. If Franchisee relocates the Franchised Business, the Protected Territory boundaries will not change.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 54

Is a Canine Dimensions franchisee required to complete the Disclosure Acknowledgment Statement if they live or plan to operate in California?

Accepted Answer

We will not ask you to complete the Disclosure Acknowledgment Statement, and we will disregard any answers from you, if you live or plan to operate your franchise in the states of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 55

Is a Canine Dimensions franchisee required to maintain Workers' Compensation insurance?

Accepted Answer

4.8.1 Franchisee shall secure and maintain in force, in its name, all required licenses, permits and certificates relating to the operation of the Franchised Business. Franchisee shall operate its Franchised Business in full compliance with all applicable laws, ordinances and regulations, including, without limitation, workers' compensation insurance, unemployment insurance, and withholding and payment of income taxes, social security taxes and sales taxes.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 56

Is a Canine Dimensions franchisee's eligibility for a successor franchise dependent on them not being in default of any agreements with the franchisor?

Accepted Answer

s.
B. Franchisee desires to Transfer his/her its Canine Dimensions franchise / obtain a successor franchise (circle one).

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

In consideration of the mutual covenants and conditions contained in this Mutual General Release and in the Franchise Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties, the parties agree as follows:

- 1. Canine Dimensions and Franchisee do hereby mutually release and forever discharge each other and each other's heirs, successors, representatives, assigns, agents, employees, officers, and directors ("Designees"), and each of them, of and from any claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action of every nature, character, and description known or unknown, vested or contingent, which each party now owns or holds, or has at any time heretofore owned or held, or may at any time own or hold against the other party hereto, arising prior to and including the date of this Mutual General Release Agreement; provided, however, that this release shall exclude claims arising from assertion of any continuing rights reserved in this Mutual General Release Agreement.
- 2. This release shall not apply to any claims which the Franchisee may have arising under (a) the California Franchise Investment Law or the California Franchise Relations Act; (b) the Hawaii Franchise Investment Law; (c) the Maryland Franchise Registration and Disclosure Law; (d) the Minnesota Franchise Act; (e) the New York Franchise Investment Law; (f) the North Dakota Franchise Investment Law; or (g) the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This release shall exclude claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business. The parties expressly agree that this Mutual General Release Agreement will not apply to any claims Canine Dimensions may have under any Promissory Notes ancillary to the Franchise Agreement, or that pertain to other payment arrangements that the parties may have agreed upon.

3. Waiver of California Civil Code Section 1542.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 57

Are Canine Dimensions franchisees required to have Workers' Compensation insurance?

Accepted Answer

You currently are required to maintain the following insurance coverage:

- (1) comprehensive general liability coverage against claims for bodily and personal injury, death, and property damage caused by or occurring in conjunction with the operation of your Franchised Business or your conduct of business under the Franchise Agreement under one or more policies of insurance containing minimum liability coverage of \$1,000,000 per occurrence and \$2,000,000 aggregate, including product / completed operations insurance;
- (2) automobile liability (split limit) of \$250,000 per person, \$500,000 per accident, and \$100,000 property damage for any vehicles used in the operation of the Franchised Business;
- (3) an umbrella liability insurance policy with minimum liability coverage of \$2,000,000;
- (4) employer's liability of \$1,000,000 per incident and Workers' Compensation or other employer's liability insurance as well as such other insurance as may be required by statute or rule in the state in which your Franchised Business is located;
- (5) professional liability insurance of \$25,000 per incident; and
- (6) any other insurance that we may require in the future or that may be required according to the law or the terms of your lease.

You must maintain all required policies in force during the entire term of the Franchise Agreement and any renewal terms. We may periodically increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request, our directors, employees or shareholders) as additional insureds and must provide us with 30 days' advance written notice of any material modification, cancellation or expiration of the policy.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)

Question 58

Does the Canine Dimensions franchisor allow brokers to make verbal agreements that contradict the FDD?

Accepted Answer

T

As you know, Canine Dimensions Franchising, LLC (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Canine Dimensions Business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain: (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.

In the event that you are intending to purchase an existing Franchised Business from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.

We will not ask you to complete this form, and we will disregard any answers from you, if you live or plan to operate your franchise in the states of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin.

|    | 1. Are you seeking to enter into the Franchise Agreement in connection with a purchase or transfer of an existing Franchised Business from an existing Franchisee? |  |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
|  | Yes |  |
|  | No |  |
| 20 | 2. I had my first face-to-face meeting with a Franchisor representative on,                                                                                           |  |
|  | 3. Have you received and personally reviewed the Franchise Agreement, each addendum, and/or |  |
|  | related agreement provided to you? |  |
|  | Yes |  |
|  | No |  |
|  | 4. Do you understand all of the information contained in the Franchise Agreement, each |  |
|  | addendum, and/or related agreement provided to you? |  |
|  | Yes |  |
|  | No |  |

If no, what parts of the Franchise Agreement, any Addendum, and/or related agreement do you not understand? (Attach additional pages, if necessary.) provided to you? 5. Have you received and personally reviewed the Franchisor's Disclosure Document that was Yes No 6. Did you sign a receipt for the Disclosure Document indicating the date you received it? Yes No 7. Do you understand all of the information contained in the Disclosure Document and any state specific Addendum to the Disclosure Document? Yes No additional pages, if necessary.) If No, what parts of the Disclosure Document and/or Addendum do you not understand? (Attach 8. Have you discussed the benefits and risks of establishing and operating a Franchised Business with an attorney, accountant, or other professional advisor, or made the decision not to consult with one? Yes No 9. Do you understand that the success or failure of your Franchised Business will depend in large part upon your skills and abilities, competition from other businesses, interest rates, inflation, labor and supply costs, location, lease terms, your management capabilities and other economic, and business factors? Yes No 10. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any statement or promise concerning the actual or potential revenues, profits or operating costs of any particular Franchised Business operated by the Franchisor or its franchisees (or of any group of such businesses), that is contrary to or different from the information contained in the Disclosure Document? Yes No
|        |                                  | 11. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any statement or promise regarding the amount of money you may earn in operating the franchised business that is contrary to or different from the information contained in the Disclosure Document?                                                                               |
|--------|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  |  | 12. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement or promise concerning the total amount of revenue the Franchised Business will generate, that is |
|  |  | contrary to or different from the information contained in the Disclosure Document? |
|        | Yes                              | No                                                                                                                                                                                                                                                                                                                                                                                  |
|  |  | 13. Has any employee of a Broker or other person speaking on behalf of the Franchisor made any |
|  |  | statement or promise regarding the costs you may incur in operating the Franchised Business that is contrary |
|  |  | to or different from the information contained in the Disclosure Document?

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 33–35)

Question 59

What is the Canine Dimensions Franchisor's discretion regarding requiring conditions for transfer approval?

Accepted Answer

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 60

What happens if I fail to maintain Canine Dimensions' standards?

Accepted Answer

We have the right to terminate our grant, or reduce the size, of your Protected Territory if you default under the Franchise Agreement for, among other things, failing to maintain our standards or failure to pay royalty and other fees when they become due. Otherwise, continuation of your territorial exclusivity does not depend on your achieving a certain sales volume, market penetration, or other contingency, and there are no other circumstances when your Protected Territory may be altered. There are not any other circumstances that permit us to modify your territorial rights.

Source: Item 12 — TERRITORY (FDD pages 23–25)

Question 61

What happens if I fail to pay royalty and other fees when they become due for my Canine Dimensions franchise?

Accepted Answer

We have the right to terminate our grant, or reduce the size, of your Protected Territory if you default under the Franchise Agreement for, among other things, failing to maintain our standards or failure to pay royalty and other fees when they become due.

Source: Item 12 — TERRITORY (FDD pages 23–25)

Question 62

What happens if a Canine Dimensions franchisee is in default of any agreement with the franchisor when seeking a successor franchise?

Accepted Answer

C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.

Source: Item 22 — CONTRACTS (FDD page 36)

Question 63

What happens if the license to use the marks is terminated for Canine Dimensions?

Accepted Answer

All Marks are owned by our affiliate, Davidson and Michaels, LLC, who has granted to us a royalty-free license to exclusively use and franchise the Marks to operators of Canine Dimensions Businesses. The license does not contain any significant limitations on our right to use or license the Marks. If the license were to be terminated, we will have the right to change the name under which we and our franchisees operate and continue to operate and license the existing Canine Dimensions Businesses under a different name. Except as described above, no currently effective agreements significantly limit our rights to use or license the use of the Marks.

Source: Item 13 — TRADEMARKS (FDD pages 25–26)

Question 64

What happens if the transferee of a Canine Dimensions franchise is a corporate entity?

Accepted Answer

(If the Franchisee is a corporate entity, this Agreement must be signed by each person owning any interest in the Franchisee.)

Source: Item 22 — CONTRACTS (FDD page 36)

Canine_Dimensions 2025 FDD FAQ