Is a Canine Dimensions franchisee advised to have legal counsel review the administrative assistant agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT F
STATE-SPECIFIC ADDENDUM
ADDENDUM TO THE CANINE DIMENSIONS FRANCHISING, LLC DISCLOSURE DOCUMENT: CALIFORNIA
-
- California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer, and non-renewal of a franchise. If the Franchise Agreement contains provisions that are inconsistent with the law, the law will control.
-
- The Franchise Agreement provide for termination upon bankruptcy. This provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A. Sec. 101 et seq.).
-
- The Franchise Agreement contain covenants not to compete which extend beyond the termination of the agreements. These provisions may not be enforceable under California law.
-
- Section 31125 of the California Corporation Code requires the franchisor to provide you with a disclosure document before asking you to agree to a material modification of an existing franchise.
-
- Neither the franchisor, any person or franchise broker in Item 2 of the Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 79a et seq., suspending or expelling such persons from membership in such association or exchange.
-
- The franchise agreement requires binding arbitration. The arbitration will occur in Florida with the costs being borne by the franchisee and franchisor. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California. Business and Professions Code Section 20040.5 relating to forum selection clauses restricting venue outside the state of California or arbitration may be preempted by the Federal Arbitration Act. Section 20040.5 may still apply to any provision relating to judicial proceedings. A binding arbitration provision may not be enforceable under generally applicable contract defenses, such as fraud, duress, or unconscionability.
-
- The Franchise Agreement require application of the laws of Florida. This provision may not be enforceable under California law.
-
- You must sign a general release if you renew or transfer your franchise. California Corporation Code 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code 31000 through 31516). Business and Professions
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 27)
What This Means (2025 FDD)
Based on the 2025 Canine Dimensions Franchise Disclosure Document, there is no specific mention of an "administrative assistant agreement." However, Item 22 discusses contracts and agreements in general, and Exhibit F includes a state-specific addendum for California that encourages prospective franchisees to consult with legal counsel regarding specific provisions within the franchise agreement, particularly those related to venue, arbitration, and the application of state laws.
Although the FDD does not explicitly address an administrative assistant agreement, franchisees will likely need to engage with various contracts and legal documents as part of their business operations. Item 22 generally advises franchisees to understand their obligations and rights within any agreement they enter.
Given the complexity of franchise agreements and the potential impact of state-specific laws, it would be prudent for a prospective Canine Dimensions franchisee to seek legal counsel to review all agreements, including any agreements related to hiring or contracting with administrative staff, to ensure compliance and understanding of their rights and responsibilities. Franchisees should consult with the franchisor for more information.