Must the Canine Dimensions franchised business be owner-operated?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
4.7.4 Franchisee must maintain a current list of all owners of record and beneficial owners of any class of voting stock of Franchisee and shall furnish the list to Franchisor upon request.
- 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."
These expenses do not include payroll costs, as we expect that you will operate your Franchised Business personally.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 27)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, while it is expected that franchisees will personally operate the business, there is no explicit requirement that the franchised business be owner-operated. Item 7 notes that the estimated initial investment does not include payroll costs, as Canine Dimensions expects that franchisees will operate the Franchised Business personally. However, the FDD does not state that the franchisee is obligated to do so.
Item 4.7.4 states that franchisees must maintain a current list of all owners of record and beneficial owners of any class of voting stock and furnish the list to the franchisor upon request. Additionally, 4.7.5 states that each owner of an interest in the Franchisee must execute and return to the Franchisor the "Guaranty and Assumption of Obligations," attached as "Schedule D."
While Canine Dimensions anticipates the franchisee's personal involvement, the franchise agreement allows for the possibility of multiple owners or investors who may not be involved in the daily operations. A prospective franchisee should clarify with Canine Dimensions whether active owner-operation is a strict requirement or if management by a designated employee is permissible.