When does Canine Dimensions begin assessing royalty fees after opening?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 11% of Gross Sales or the Minimum Royalty ($250 per week), whichever is greater. (Note 2) | Payable on Tuesday of each week, via ACH (Note 3) | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. Royalties will be assessed after you have been operating for 30 days. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, royalty fees are assessed starting 30 days after the franchise begins operations. The royalty fee is 11% of Gross Sales or a minimum of $250 per week, whichever is greater. This fee is payable every Tuesday via Automated Clearing House (ACH).
This means that a new Canine Dimensions franchisee will not have to pay royalty fees during their first month of operation, which can help with initial cash flow. However, after that initial period, franchisees must ensure they have sufficient funds available for weekly ACH withdrawals to cover the royalty fees. The royalty is based on gross sales, so as revenue increases, the royalty payment will also increase, but it will always be at least $250 per week.
It is important for prospective franchisees to understand how the royalty fee is calculated and when it is due to avoid any late payment fees or other penalties. Franchisees should also factor in the royalty fees when projecting their expenses and revenue to ensure the business is financially sustainable. The ACH payment method means that Canine Dimensions will automatically withdraw the royalty payment from the franchisee's account, so it is crucial to maintain accurate sales records and ensure sufficient funds are available.