What happens if a Canine Dimensions franchisee transfers rights without Canine Dimensions' consent?
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)
Based on the 2025 Franchise Disclosure Document, the document does not specify the consequences for a Canine Dimensions franchisee who transfers rights without the franchisor's consent. However, the document does state that the franchisee needs consent to transfer their franchise.
Item 5 outlines the initial fees, including transfer fees, which suggests that transfers are possible with the franchisor's approval. Item 17 discusses renewal, termination, transfer, and dispute resolution, indicating that the Franchise Agreement contains provisions related to transfers. Schedule B includes a Mutual General Release Agreement related to franchise transfers, implying that transfers are contemplated within the franchise system, but require franchisor consent.
To fully understand the implications of an unapproved transfer, a prospective Canine Dimensions franchisee should ask the franchisor for clarification. Specifically, they should inquire about the penalties or remedies Canine Dimensions may pursue if a franchisee attempts to transfer their franchise rights without obtaining the necessary prior written consent. This information is crucial for assessing the risks and obligations associated with the franchise agreement.