What happens if the Canine Dimensions Royalty Fee debit day is not a business day?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must sign and deliver to Franchisor any documents required to authorize Franchisor to debit Franchisee's business checking account automatically for the Royalty Fee and other amounts due under this Agreement. On or before the day and time Franchisor specifies (currently, 5:00 P.M. eastern time on the first Wednesday of each month), Franchisee must report to Franchisor by telephone or electronic means or in written form, as Franchisor directs, the true and correct Gross Sales of the Franchised Business for the previous fiscal month. Franchisor will debit Franchisee's account for the Royalty Fee and any other fees due on the Tuesday of each week for the prior week ending Saturday. Franchisee agrees to make the funds available for withdrawal by electronic transfer before each due date. In the event that the Tuesday is not a business day, Franchisor will debit Franchisee's account on the next business day.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, royalty fees and other payments must be made via electronic funds transfer or automatic debit. Franchisees must authorize Canine Dimensions to debit their business checking account for these fees. Franchisees must report their gross sales to Canine Dimensions by a specified day and time (currently 5:00 P.M. eastern time on the first Wednesday of each month). Canine Dimensions will then debit the franchisee's account for the royalty fee and any other fees due on Tuesdays for the prior week ending Saturday.
If the scheduled Tuesday debit day is not a business day, Canine Dimensions will debit the franchisee's account on the next business day. Franchisees are responsible for ensuring funds are available for withdrawal by electronic transfer before each due date.
This clause protects Canine Dimensions from delays in receiving royalty payments due to bank holidays or other non-business days. It also provides clarity to the franchisee, so they know when to expect the debit and can ensure funds are available. This is a fairly standard practice in franchising, as it ensures consistent and timely payment of royalties, which are crucial for the franchisor's revenue stream.