Will Canine Dimensions credit excess Royalty Fees against future debits?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.5.2.1 Debit Franchisee's account for one hundred twenty percent (120%) of the last Royalty Fee that it debited. If the Royalty debited from Franchisee's account is less than the Royalty Fee Franchisee actually owes to Franchisor (once Franchisor has determined the true and correct Gross Sales of the Franchised Business), Franchisor will debit Franchisee's account for the balance of the Royalty Fee due on the day Franchisor specifies. If the Royalty Fee debited from Franchisee's account is greater than the Royalty Fee actually owed, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following week.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, if a franchisee's account is debited for more than the Royalty Fee actually owed, Canine Dimensions will credit the excess against the amount it would otherwise debit from the franchisee's account during the following week.
This crediting mechanism only applies if the over-debit occurs because Canine Dimensions initially debited 120% of the last royalty fee due to the franchisee failing to report gross sales on time. Once the franchisee provides the correct gross sales figures, Canine Dimensions will reconcile the difference.
This policy provides a short-term correction mechanism for overpayments specifically related to the late reporting of gross sales. It does not appear to address scenarios where overpayments occur for other reasons, or how those might be handled. A prospective franchisee should clarify with Canine Dimensions the procedures for handling overpayments of royalty fees that arise from situations other than late reporting of gross sales.