Does the 'Additional Funds' estimate for Canine Dimensions include payroll costs?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional funds is an estimate of the funds needed to provide you with additional operating capital for other variable costs (e.g., electricity, telephone, Internet service, Internet setup, etc.), paper, cleaning, cellular telephones, and other supplies. You will need a car or van for transportation; however, we anticipate that you will use a motor vehicle that you already own. These expenses do not include payroll costs, as we expect that you will operate your Franchised Business personally. New businesses often generate a negative cash flow. We estimate that the amount given will be sufficient to cover ongoing expenses for the start-up phase of the business, which we calculate to be three months. This is only an estimate and there is no guarantee that additional working capital will not be necessary during this start-up phase or after. In calculating additional funds, we relied on the experience of our Affiliate as the owner and operator, since 2004, of a Canine Dimensions Business like the franchise being offered to you (and its predecessor in interest from 1994-2004).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–14)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the 'Additional Funds' estimate does not include payroll costs. The FDD specifies that these funds are intended to cover other variable costs like electricity, telephone, internet, paper, cleaning, cellular phones, and other supplies.
The document explicitly states that payroll costs are excluded because Canine Dimensions expects franchisees to personally operate their franchised business. The estimated range for these additional funds is $1,000 to $3,000 for the first three months of operation.
Prospective franchisees should be aware that this is only an estimate, and there is no guarantee that the provided amount will be sufficient to cover all ongoing expenses during the startup phase or after. It is crucial for potential Canine Dimensions franchisees to carefully review these figures with a business advisor to assess their individual financial needs and circumstances.