What documents must a Canine Dimensions franchisee sign to authorize automatic debits?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.7.5 Each owner of an interest in Franchisee must execute and return to Franchisor the "Guaranty and Assumption of Obligations," attached as "Schedule D."
4.8 Compliance with Laws and Ethical Business Practices
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Canine Dimensions franchise agreement outlines the use of ACH (Automated Clearing House) transfers for royalty fee payments. While the FDD details the implications of using this payment method, it does not specify a particular form or document that a franchisee must sign to authorize these automatic debits. The agreement states that electronic receipts are generated from ACH transactions and serve as sufficient documentation, without individual invoices or IRS form 1099s from the franchisor.
However, the FDD does mention a "Guaranty and Assumption of Obligations" agreement in Schedule D, which each owner of an interest in the franchisee entity must sign and return to Canine Dimensions. While this document is related to obligations, it is not explicitly tied to ACH or automatic debits.
Therefore, a prospective Canine Dimensions franchisee should clarify with the franchisor the exact procedure and documentation required to authorize automatic royalty payments via ACH. Specifically, they should inquire whether a separate authorization form is needed, or if the franchise agreement itself contains the necessary authorization for automatic debits.