What documentation will Canine Dimensions franchisees receive for ACH transactions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.5.5 Franchisee acknowledges that the electronic receipts generated from the ACH transactions listed herein are the only documents that will be generated for the transactions made under this Agreement and that they will not be accompanied by individual invoices from Franchisor. Franchisee agrees that such receipts are sufficient documentation of transactions, and that payments made by the Franchisee to Franchisor under this Agreement will not require Franchisor to generate an IRS form 1099.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees will only receive electronic receipts generated from ACH transactions as documentation. Canine Dimensions will not provide individual invoices for these transactions. The FDD states that these electronic receipts are considered sufficient documentation.
This means that franchisees need to rely on these electronic receipts for their record-keeping and accounting purposes related to royalty fees and other payments made via ACH. Franchisees should ensure they have a system in place to properly store and manage these electronic receipts.
Furthermore, the Canine Dimensions FDD specifies that the franchisor is not required to generate an IRS form 1099 for payments made by franchisees under the agreement. Franchisees should consult with a tax professional to understand their tax obligations and reporting requirements, given that they will not receive a 1099 form from Canine Dimensions.