What is the length of the Canine Dimensions franchise agreement renewal term?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
d upon such date that franchisee's training is completed.
Therefore, the Company concludes that the franchise agreement includes distinct performance obligations for the use of its brand name and logo, supported by marketing and other support services, for the life of each ten-year franchise agreement, while the obligations of the Company terminate for training services and territory fee upon the conclusion of the initial training.
As such the Company recognizes as revenue upon the completion of training $12,500. The balance of initial fees results in $35,000 ratably recognized over the ten-year or fiveyear term of the franchise agreement.
The Company also enters into renewals of existing franchise agreements without the requirement for the initial expenses incurred on entering int a new franchise agreement. In this situations, the Company requires a renewal fee of $3,500 and an ongoing monthly royalty fee.
The Company recognizes revenues related to renewal fees ratably over each of the five years of the renewal term based on its obligations to provide limited use of the Company's brand name and logo, supported by marketing activities, and ongoing access to continually upda
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the renewal term for a franchise agreement is five years. The company enters into renewals of existing franchise agreements without requiring the initial expenses incurred when entering into a new franchise agreement.
To renew, Canine Dimensions requires a $3,500 renewal fee and an ongoing monthly royalty fee. The company recognizes revenues related to renewal fees ratably over each of the five years of the renewal term. This revenue recognition is based on Canine Dimensions' obligations to provide limited use of the company's brand name and logo, supported by marketing activities, and ongoing access to a continually updated operating procedures manual for the five-year period.
This means that a franchisee who chooses to renew their agreement with Canine Dimensions will pay a renewal fee and continue to pay monthly royalties. In return, they can continue using the Canine Dimensions brand, receive marketing support, and access the updated operating manual for another five years.