Does Canine Dimensions generate an IRS form 1099 for payments made by the franchisee?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.5.5 Franchisee acknowledges that the electronic receipts generated from the ACH transactions listed herein are the only documents that will be generated for the transactions made under this Agreement and that they will not be accompanied by individual invoices from Franchisor. Franchisee agrees that such receipts are sufficient documentation of transactions, and that payments made by the Franchisee to Franchisor under this Agreement will not require Franchisor to generate an IRS form 1099.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees will not receive an IRS form 1099 from the franchisor for payments made under the Franchise Agreement. Canine Dimensions specifies that the electronic receipts generated from ACH transactions are sufficient documentation.
This means that franchisees should retain these electronic receipts for their own tax and accounting purposes. Franchisees will need to track their payments to Canine Dimensions using these receipts, as they will not receive a consolidated 1099 form summarizing these payments.
This policy is somewhat unusual, as franchisors often provide 1099 forms to franchisees to document royalty and other fee payments. Franchisees should consult with a tax professional to ensure they properly account for these payments without a 1099 form.