What is the method of payment for the Canine Dimensions Royalty fee?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 11% of Gross Sales or the Minimum Royalty ($250 per week), whichever is greater. (Note 2) | Payable on Tuesday of each week, via ACH (Note 3) | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. Royalties will be assessed after you have been operating for 30 days. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Royalty fee, which is 11% of Gross Sales or a minimum of $250 per week (whichever is greater), is payable on Tuesday of each week via ACH. This means Canine Dimensions franchisees are required to make their royalty payments through an automatic debit from their bank account.
The FDD specifies that funds must be available in the franchisee's account for withdrawal. This implies that franchisees need to ensure sufficient funds are present in their designated bank account to cover the royalty payments each week to avoid potential late payment fees or other penalties. The royalties will begin to be assessed after the franchisee has been operating for 30 days.
This payment method provides convenience for both the franchisee and Canine Dimensions, as it automates the payment process. However, franchisees must carefully manage their cash flow to ensure timely payment of royalties. ACH payments are a fairly standard practice in franchising, as they ensure consistent and reliable payments to the franchisor.