Must a Canine Dimensions franchisee have consistently met their monetary obligations throughout the term to be eligible for a successor franchise agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2.3 Franchisee must have satisfied all monetary obligations owed by Franchisee to Franchisor and its affiliates and must have timely met those obligations throughout the Term;
- 2.2.4 Franchisee may execute Franchisor's then-current form of franchise agreement, which agreement will supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement, including, without limitation, a higher percentage royalty fee and advertising contribution; provided, however, that the Protected Territory will remain the same, and the rights to obtain a successor franchise agreement will be the remaining successor term specified above (if any);
- 2.2.5 Franchisee must pay Franchisor a successor franchise fee in an amount equal to ten percent (10%) of the then-current initial franchise fee then being charged to new franchisees at the time Franchisee obtains a successor franchise;
- 2.2.6 Franchise must execute a general release, in a form prescribed by Franchisor (Franchisor's current form is attached as "Schedule B"), of any and all claims against Franchisor and its subsidiaries and affiliates, and their respective officers, directors, agents and employees; and
- 2.2.7 Franchisee must comply with Franchisor's then-current qualification, certification, and training requirements.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, a franchisee must have satisfied all monetary obligations to Canine Dimensions and its affiliates and have met those obligations in a timely manner throughout the term to be eligible for a successor franchise agreement.
To obtain a successor franchise agreement, the franchisee must also have substantially complied with all provisions and conditions of the existing agreements during their terms. Additionally, the franchisee must execute Canine Dimensions' then-current form of franchise agreement, which may include different terms such as a higher royalty fee and advertising contribution, although the Protected Territory will remain the same.
The franchisee is also required to pay a successor franchise fee equal to ten percent (10%) of the then-current initial franchise fee charged to new franchisees. Furthermore, they must execute a general release of any and all claims against Canine Dimensions and its affiliates and comply with the franchisor's then-current qualification, certification, and training requirements.
Failure to meet these conditions means the franchisee will not be eligible for a successor franchise agreement and if they continue to operate the Franchised Business beyond the term of the agreement, it will be on a month-to-month basis, without the right to a Successor Franchise Agreement.