If the Canine Dimensions Internet Advertising Fund is terminated, what happens to the unused funds?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Internet Advertising Fund or to maintain, direct or administer the Internet Advertising Fund. Any unused funds that were collected in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Internet Advertising Fund on any terms we deem reasonable. If the Internet Advertising Fund is terminated, we will return any unused funds in the Internet Advertising Fund to the franchisees who contributed to it during the preceding twelve (12) month period.
In our fiscal year 2024, we collected $499,450 for the Internet Advertising Fund. 96% was used for placement of Internet advertising and 4% was used for administrative expenses.
The Internet Advertising Fund is not audited. Upon sending us a written request that is at least 120 days after the end of the fiscal year for which you seek the accounting, we will provide to you an annual accounting for the Internet Advertising Fund that shows how the Internet Advertising Fund proceeds have been spent for the previous year. (Franchise Agreement, Section 11.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, if the Internet Advertising Fund is terminated, any unused funds will be returned to the franchisees who contributed to the fund during the preceding twelve-month period.
This means that if Canine Dimensions decides to discontinue the Internet Advertising Fund, franchisees can expect to receive a portion of the remaining funds, proportional to their contributions over the past year. This provides some assurance that franchisees' contributions will not be lost if the fund is terminated.
In 2024, Canine Dimensions collected $499,450 for the Internet Advertising Fund, with 96% used for internet advertising and 4% for administrative expenses. The FDD also states that the Internet Advertising Fund is not audited, but Canine Dimensions will provide an annual accounting of the fund's expenditures upon written request from a franchisee, submitted at least 120 days after the end of the fiscal year.