When is the insurance fee payable to Canine Dimensions?

According to Canine Dimensions's 2025 Franchise Disclosure Document, the insurance fee is payable 'upon demand.' This fee covers Canine Dimensions's cost of premiums, plus a reasonable fee.

This fee is only payable if a franchisee fails to maintain the required insurance coverage, and Canine Dimensions elects to obtain coverage on their behalf. It is important for prospective franchisees to understand the insurance requirements outlined in the Franchise Agreement to avoid incurring this additional cost. Franchisees should clarify what constitutes 'required insurance coverage' and the process Canine Dimensions follows before obtaining coverage for a franchisee and demanding payment.

In general, franchisors require franchisees to maintain certain insurance coverages to protect both the franchisee's business and the franchisor from potential liabilities. However, it is less common for franchisors to directly procure insurance for franchisees and then charge them a fee. Franchisees should ensure they understand the specific circumstances under which Canine Dimensions might elect to obtain insurance on their behalf and how the 'reasonable fee' is determined.