Can Canine Dimensions commingle money paid to the Internet Advertising Fund with its operating account?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to participate in an internet marketing program that we will control (the "Internet Advertising Fund"). We will create and administer the Internet Advertising Fund using the websites and other media we select. Canine Dimensions Businesses owned by us or our affiliates may contribute to this fund on the same basis as our franchisees. The fee for the Internet Advertising Fund is a minimum of $1,000 month. You are free to increase this amount if you wish to do so.
The Internet Advertising Fund will be administered by us, or our affiliate or designees, at our discretion, and we may use a professional advertising agency or media buyer to assist us. We may commingle money paid to us for the Internet Advertising Fund with our operating account, but we will account for the funds separately.
We have complete discretion on how the Internet Advertising Fund will be utilized. We may use the Internet Advertising Fund for local, regional or national Internet marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, the development of technology for the System and any other purpose to promote the Marks. We will use the Internet for disseminating Internet Advertising Fund advertisements. We may reimburse ourselves, our authorized representatives, or our affiliates from the Internet Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses associated with the programs funded by the Internet
Advertising Fund. We do not guarantee that advertising expenditures from the Internet Advertising Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Internet Advertising Fund contributions for advertising that is principally a solicitation for the sale of franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Canine Dimensions may commingle the money paid to them for the Internet Advertising Fund with their operating account. However, they must account for the funds separately.
This means that while Canine Dimensions can deposit the Internet Advertising Fund money into the same bank account they use for their general business operations, they are required to maintain separate records to track the money coming in and how it is being spent. This is a fairly common practice, as it allows the franchisor to manage funds more efficiently while still providing transparency to franchisees.
It is important to note that Canine Dimensions has complete discretion on how the Internet Advertising Fund will be utilized and does not guarantee that advertising expenditures from the fund will directly benefit each franchisee. The FDD also states that the Internet Advertising Fund is not audited, but Canine Dimensions will provide an annual accounting of the fund if a franchisee submits a written request at least 120 days after the end of the fiscal year.