Does the Canine Dimensions franchisor have a right of first refusal to acquire a franchisee's business?

According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchisor retains a right of first refusal if a franchisee decides to sell their business. Specifically, Section 13.5 of the Franchise Agreement allows Canine Dimensions to match any legitimate written offer that a franchisee receives from a potential buyer. This provision gives Canine Dimensions the opportunity to acquire the franchise business themselves, preventing it from being sold to an outside party without their consent.

For a prospective Canine Dimensions franchisee, this right of first refusal has significant implications. If a franchisee wishes to sell their business, they must first present any offer they receive to Canine Dimensions. The franchisor then has the option to purchase the business on the same terms as the offer. This could potentially delay or complicate the sale process, as the franchisee must wait for Canine Dimensions to make a decision.

This type of clause is relatively common in franchise agreements. It allows the franchisor to maintain control over the brand and ensure that any new owners meet their standards. However, it can also limit the franchisee's ability to sell their business to the highest bidder, as Canine Dimensions can always step in and match the offer. Franchisees should carefully consider this provision and its potential impact on their exit strategy before investing in a Canine Dimensions franchise.