On what day of the week will Canine Dimensions debit a franchisee's account for Royalty Fees?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
5.5 Submitting Payments; Late Payment Fees
- 5.5.1 All Royalty Fees and other fees payable under this Agreement must be made via electronic funds transfer or automatic debit of funds, in a method determined by Franchisor, in its sole discretion. Franchisee must sign and deliver to Franchisor any documents required to authorize Franchisor to debit Franchisee's business checking account automatically for the Royalty Fee and other amounts due under this Agreement. On or before the day and time Franchisor specifies (currently, 5:00 P.M. eastern time on the first Wednesday of each month), Franchisee must report to Franchisor by telephone or electronic means or in written form, as Franchisor directs, the true and correct Gross Sales of the Franchised Business for the previous fiscal month. Franchisor will debit Franchisee's account for the Royalty Fee and any other fees due on the Tuesday of each week for the prior week ending Saturday. Franchisee agrees to make the funds available for withdrawal by electronic transfer before each due date. In the event that the Tuesday is not a business day, Franchisor will debit Franchisee's account on the next business day.
- 5.5.2 If Franchisee fails to report the Gross Sales of the Franchised Business on or before the day specified by Franchisor, then Franchisor may:
- 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.
- 5.5.2.2 Debit Franchisee's account a non-refundable late reporting fee of forty-
- 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' 2025 Franchise Disclosure Document, royalty fees and other fees are paid via electronic funds transfer or automatic debit. Franchisees must report their gross sales to Canine Dimensions by 5:00 P.M. eastern time on the first Wednesday of each month. Canine Dimensions will then debit the franchisee's account for royalty fees and any other fees due on Tuesdays of each week for the prior week ending Saturday.
If a franchisee fails to report gross sales on time, Canine Dimensions may debit the franchisee's account for 120% of the last royalty fee debited. If this amount is less than what is actually owed, Canine Dimensions will debit the account for the balance due. Conversely, if the amount debited is greater than what is owed, the excess will be credited against the amount debited the following week. Additionally, a non-refundable late reporting fee of $45 may be charged.
If the scheduled Tuesday debit date is not a business day, Canine Dimensions will debit the franchisee's account on the next business day. Franchisees must ensure funds are available for withdrawal by electronic transfer before each due date. This reliance on electronic transfers highlights the importance of franchisees maintaining accurate records and adhering to the reporting schedule to avoid penalties or discrepancies in their royalty fee payments.