Can the Canine Dimensions Internet Advertising Fund borrow money to cover deficits?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
The Internet Advertising Fund may spend in any fiscal year more or less than the total Internet Advertising Fund contributions in that year, borrow from Franchisor or others to cover deficits, or invest any surplus for future use. Any funds remaining in the Internet Advertising Fund at the end of any year will carry over to the next year. Franchisor will use all interest earned on Internet Advertising Fund contributions to pay costs before using the Internet Advertising Fund's other assets. Franchisor will prepare an annual, unaudited statement of Internet Advertising Fund collections and expenses and give Franchisee the statement upon written request.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Internet Advertising Fund can borrow money to cover deficits. Specifically, the FDD states that the fund may "borrow from Franchisor or others to cover deficits".
This means that if the amount of money coming into the Internet Advertising Fund in a given year is less than the amount spent, Canine Dimensions has the option to borrow funds to cover the difference. These borrowed funds could come from Canine Dimensions itself or from another source. This provides Canine Dimensions with flexibility in managing the advertising fund and ensuring that advertising efforts can continue even if there is a temporary shortfall in contributions.
It is also important to note that any surplus funds remaining in the Internet Advertising Fund at the end of a year will carry over to the next year. Additionally, Canine Dimensions will use all interest earned on Internet Advertising Fund contributions to pay costs before using the fund's other assets. Franchisees can request an annual, unaudited statement of the fund's collections and expenses from Canine Dimensions.