Is the late reporting fee charged by Canine Dimensions refundable?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
following week. - 5.5.2.2 Debit Franchisee's account a non-refundable late reporting fee of forty-
five dollars ($45.00).
- 5.5.3 To encourage prompt and timely payment of the Royalty Fees and to cover the costs and expenses involved in handling and processing any payments not received by their due dates, Franchisee shall pay a fee of $45.00 for any ACH transfer that is returned by the bank, and shall also pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Such charge shall accrue from the date payment was due until the date payment is actually received by Franchisor. Each failure by Franchisee to report its Gross Sales to Franchisor, or to pay the Royalty Fees or other payments payable to Franchisor when due, will be a material breach of this
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the circumstances under which the late fee is charged are described, but the document does not explicitly state whether the late reporting fee is refundable.
However, the FDD does state that the franchisee will pay a $45 fee for any ACH transfer that is returned by the bank. Additionally, the franchisee shall pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Such charge shall accrue from the date payment was due until the date payment is actually received by Franchisor.
To fully understand the conditions for refunding the late reporting fee, a prospective Canine Dimensions franchisee should seek clarification from the franchisor regarding specific scenarios and policies related to refunds of late fees. This inquiry should cover situations where the late reporting was due to errors or disputes, and whether there is a formal process for requesting a refund.