When are funds required to be available in a Canine Dimensions franchisee's account for Royalty fee withdrawal?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 11% of Gross Sales or the Minimum Royalty ($250 per week), whichever is greater. (Note 2) | Payable on Tuesday of each week, via ACH (Note 3) | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. Royalties will be assessed after you have been operating for 30 days. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Royalty fees, which are 11% of Gross Sales or a minimum of $250 per week (whichever is greater), are payable on Tuesday of each week via ACH. The funds must be available in the franchisee's account for withdrawal via automatic debit. Royalties are assessed after the franchisee has been operating for 30 days.
This means that a Canine Dimensions franchisee needs to ensure that their bank account has sufficient funds to cover the royalty payment every Tuesday. The amount will vary depending on their gross sales, but it will never be less than $250 per week. The ACH (Automated Clearing House) payment method indicates that Canine Dimensions will automatically withdraw the funds from the franchisee's account, so proactive management of account balances is essential to avoid any dishonored payment fees.
It's important to note that royalty fees start accruing after the first 30 days of operation. This initial period may provide a slight financial buffer for new franchisees as they establish their business. However, franchisees should plan to have adequate cash flow to meet the weekly royalty obligations from that point forward. Failing to have sufficient funds available could result in penalties, such as the Late Reporting / Dishonored Payment Fee of $45.00, as outlined elsewhere in the FDD.