How is interest calculated on overdue payments to Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Annual Conference | Our reasonable fee, which is currently $595 for up to two of your representatives. | On the Friday after the Annual Conference. | We may host up to one convention annually. You will be notified of the required fee (which we may increase) in our notice of the Annual Conference. You must pay for your own travel, lodging and meal expenses. |
| Costs and attorneys' fees (Note 4) | Will vary under circumstances | Upon settlement or conclusion of a claim or action | Due when you do not comply with the Franchise Agreement |
| Website Maintenance | $350 | Annually | This fee is paid to us and includes maintenance of a webpage on our website for your Business. |
| Email Fee | $95 annually per mailbox | Annually | We charge this amount for each mailbox you request at our domain. |
| Toll Free Number | $150 | Annually | This fee is used to maintain our toll-free number, which will be used to refer business inquiries to our franchisees. |
| Interest | 1.5% of the delinquent amount or the highest rate permitted by law, whichever is less. | Payable when any payment is overdue. | Payable only if you do not pay your bills on time. Interest begins from the date of underpayment. |
| Late Reporting / Dishonored Payment Fee | $45.00 | Payable when you fail to report your Gross Sales on time, or when your payment is dishonored or returned. | You must report your Gross Sales by 5 PM eastern time on the first Wednesday of each month. If any payment you tender to us is not honored for any reason, you must pay us this fee. |
| Insurance | Our cost of premiums, plus a reasonable fee. | Upon demand | Payable only if you fail to maintain required insurance coverage and we elect to obtain coverage for you. |
| Supplier or Product Approval Fee | Reasonable costs incurred by us with respect to evaluating a supplier or product for which you request our approval; not less than $250. | Upon demand | Payable if you request that we evaluate a potential product or supplier or products you wish to purchase. |
| Liquidated Damages | See Note 5 | Upon Demand | Payable only if we terminate the Franchise Agreement with cause, or if you cancel your Franchise Agreement prior to its expiration. |
| Name of Fee | Amount | Due Date | Remarks |
| ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Successor Franchise Fee | 10% of our standard initial franchise fee in effect at the date of signing your successor franchise agreement. | Upon signing your successor franchise agreement | Payable only if you choose to obtain a successor franchise |
| Indemnification | Will vary under circumstances | As incurred | Payable to indemnify us, our affiliates and owners, officers, employees, agents, successors, and assigns against all claims etc. related to your ownership and operation of the Franchised Business. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, interest will be charged on the delinquent amount. The interest rate is 1.5% of the overdue amount, or the highest rate permitted by law, whichever is less. This interest begins accruing from the date of the underpayment.
This means that a Canine Dimensions franchisee needs to prioritize timely payments to avoid incurring interest charges. The specific amount of interest charged will depend on the size of the overdue payment and the applicable legal limits on interest rates in the franchisee's jurisdiction. Franchisees should be aware of these potential charges and factor them into their financial planning.
It is common practice in franchising to charge interest on overdue payments as a way to encourage franchisees to meet their financial obligations promptly. The interest rate specified in the Canine Dimensions FDD appears to be within a typical range for franchise agreements. Franchisees should consult with a financial advisor to understand the full implications of these interest charges and how they might impact their business's profitability.