What constitutes a material breach of the Franchise Agreement for a Canine Dimensions franchisee regarding suppliers?

According to Canine Dimensions's 2025 Franchise Disclosure Document, it is a material breach of the Franchise Agreement if a franchisee buys products, equipment, supplies, inventory, goods, or services from anyone other than Canine Dimensions's designated or approved suppliers and distributors without prior written approval. This includes Canine Dimensions or its affiliates.

Canine Dimensions requires franchisees to purchase all required inventory, goods, equipment, supplies, forms, products, services, and advertising materials from approved suppliers. Franchisees must operate their franchised business according to the standards and specifications in the confidential manual. Canine Dimensions will provide a list of approved suppliers after the Franchise Agreement is executed.

If a franchisee wants to use a different supplier, they must notify Canine Dimensions and get written approval. Canine Dimensions will review the request and respond in writing within 60 days after testing the item or supplier. The franchisee will be required to pay for the costs of testing, which will not be less than $250. Canine Dimensions does not make its criteria for selecting approved suppliers available to franchisees, nor does it issue specifications and standards to franchisees or approved suppliers. Supplier approval might depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, and a supplier's willingness to pay Canine Dimensions or its affiliates for the right to do business with the Canine Dimensions system.

Canine Dimensions estimates that purchases from approved suppliers will be between 10% and 50% of the total cost to establish the Franchised Business and between 10% and 40% of the total cost of operating the Franchised Business. Franchisees are required to purchase branded materials, such as marketing materials, workbooks, car wraps, brochures, business cards, and uniforms, from Canine Dimensions or its affiliates, as they are the only approved suppliers of logo-bearing materials. Generally, franchisees must purchase all of their inventory items from suppliers approved by Canine Dimensions, which may include Canine Dimensions or its affiliates.