Is the cancellation right for Canine Dimensions waivable by the purchaser?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
to the Franchise Agreement:
| NOTICE OF CANCELLATION | |
|---|---|
| (enter date of transaction) |
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:
ADDENDUM TO DISCLOSURE DOCUMENT AND AMENDMENT TO FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND
This will serve as the State Addendum for the State of Maryland for Canine Dimensions Franchising, LLC and for its Franchise Agreement. This addendum amends the Disclosure Document and Franchise Agreement.
-
- The provisions contained in Item 17 of the Disclosure Document and Article 14 of the Franchise Agreement regarding termination may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
-
- 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.
-
- Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective franchisee to assent to any release, estoppel or waiver of liability as a condition of purchasing a franchise. Any disclaimer regarding the occurrence and/or acknowledgment of the nonoccurrence of acts that would constitute a violation of the Franchise Law in order to purchase the 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.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, a franchisee has the right to cancel the franchise transaction within three business days without penalty or obligation. If cancellation occurs, any property traded in, payments made, and negotiable instruments executed by the franchisee will be returned within ten business days following receipt of the cancellation notice by Canine Dimensions, and any security interest will be canceled.
The FDD also states that to cancel the transaction, the franchisee must mail or deliver a signed and dated copy of the cancellation notice, any other written notice, or send a telegram to Phil Guida at the specified address, phone number, or email, no later than midnight of the third business day after the Effective Date. The franchisee must also make available to Canine Dimensions any goods delivered under the contract in substantially as good condition as when received, or comply with Canine Dimensions's instructions regarding the return shipment of the goods at Canine Dimensions's expense and risk.
Furthermore, the Mutual General Release Agreement includes a waiver of California Civil Code Section 1542, where the franchisee acknowledges they are releasing unknown claims and waiving rights under that section or any similar statute or common law principle. This indicates that while there is an initial cancellation right, franchisees may later waive rights related to claims, including unknown claims, as part of a mutual release agreement. This waiver is specifically tied to the Mutual General Release Agreement and the franchisee's understanding of its implications.
In practical terms, a prospective Canine Dimensions franchisee should be aware of the initial three-day cancellation window and the process for exercising that right. They should also carefully review the Mutual General Release Agreement and understand the implications of waiving rights, especially concerning unknown claims, as this waiver could affect their ability to pursue future legal actions against Canine Dimensions. It is advisable to seek legal counsel to fully understand these provisions.