What is the current deadline for a Canine Dimensions franchisee to report Gross Sales each month?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
y cooperate with Franchisor's representatives conducting any such audit. In the event that any such audit should disclose
any understatement of Gross Sales, Franchisee shall pay, within fifteen (15) days after receipt of the audit report, two (2) times the royalty fees and any other amounts (including, without limitation, interest pursuant to Section 5.5.3) due upon the amount of such understatement. Further, in the event such audit is made necessary by the failure of Franchisee to furnish reports, financial statements, tax returns or schedules as herein required, or if an understatement of Gross Sales for any month is determined by any such audit to be greater than two percent (2%) of the Gross Sales for such month disclosed by the audit, Franchisee shall reimburse Franchisor for the cost of such audit, including, without limitation, the charges of any independent accountants, legal fees, and travel expenses, room, board and compensation of their employees or representatives, which fee will not be less than Two Hundred Fifty Dollars ($250). The foregoing remedies are in addition to all other rights and remedies Fra
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Canine Dimensions Franchise Disclosure Document, there is no specific deadline mentioned for franchisees to report their Gross Sales each month. However, the document does state that failure to report Gross Sales or pay Royalty Fees when due constitutes a material breach of the agreement, unless the lateness is due to the Franchisor's failure to debit the franchisee's account in a timely manner.
In cases of understatement of Gross Sales, if an audit reveals that the understatement exceeds two percent (2%) of the actual Gross Sales for the month, the franchisee is responsible for reimbursing Canine Dimensions for the audit costs. These costs include charges from independent accountants, legal fees, and travel expenses, with a minimum fee of $250. Additionally, the franchisee will need to pay two times the royalty fees and any other amounts due on the understated amount, along with interest as per Section 5.5.3, within fifteen (15) days of receiving the audit report.
To gain a comprehensive understanding of the specific monthly reporting deadlines for Gross Sales, a prospective Canine Dimensions franchisee should directly inquire with the franchisor. Understanding these deadlines is crucial for maintaining compliance and avoiding potential penalties or breaches of the franchise agreement.