Is the Canine Dimensions franchisee still liable for obligations prior to the transfer date?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS MUTUAL GENERAL RELEASE AGREEMENT is made and entered into this day of, 20, by and between Canine Dimensions Franchising, LLC, a Florida limited liability company ("Canine Dimensions"), whose principal office Loop, Bonita Springs, Florida 34135 and is 23208 Sanabria , with an address at ("Franchisee"). A. Canine Dimensions and Franchisee entered into a Canine Dimensions Franchise Agreement (the "Franchise Agreement") dated, 20 granting Franchisee the right to operate a Canine Dimensions business using the confidential policies, procedures and techniques owned by Canine Dimensions Franchising, LLC, and using certain Marks, including the trademark and service mark Canine Dimensions. B. Franchisee desires to Transfer his/her its Canine Dimensions franchise / obtain a successor franchise (circle one).
C. Canine Dimensions, as permitted by the Franchise Agreement is conditioning its consent to such transfer or renewal on the execution of this Mutual General Release Agreement by Franchisee.
In consideration of the mutual covenants and conditions contained in this Mutual General Release and in the Franchise Agreement, and other good and valuable consideration, receipt of which is hereby acknowledged by each of the parties, the parties agree as follows:
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, a franchisee may still be liable for obligations prior to the transfer date. Specifically, in order to transfer or renew a franchise, Canine Dimensions may require the franchisee to execute a Mutual General Release Agreement.
The Mutual General Release Agreement stipulates that Canine Dimensions and the franchisee release each other from claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action that existed before the date of the agreement. However, this release does not apply to claims arising from the franchisee's failure to pay amounts due to Canine Dimensions in the ordinary course of business.
This means that even with the release agreement, a franchisee remains responsible for outstanding payments owed to Canine Dimensions. This condition ensures that Canine Dimensions can still recover any unpaid dues, even after a franchise is transferred or renewed. Prospective franchisees should be aware of this clause and ensure all financial obligations are met before considering a transfer or renewal.