How will the monthly advertising fee be used by Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must pay to Franchisor a monthly advertising fee equal to One Thousand Dollars ($1,000), which will be spent on an Internet Advertising program administered by the Franchisor. Such amount is payable on the first (1st) day of each month in the manner set forth in Section 5.5, and will be used for an Internet Advertising Fund to be administered by the Franchisor, as described in Section 11.3.
Franchisor intends the Internet Advertising Fund to maximize recognition of the Marks and patronage of Canine Dimensions Businesses. Although Franchisor will try to use the Internet Advertising Fund to develop advertising and marketing materials and programs, and to place advertising and marketing, that will benefit all Canine Dimensions Businesses, Franchisor need not ensure that Internet Advertising Fund expenditures in or affecting any geographic area are proportionate or equivalent to the Internet Advertising Fund contributions by Businesses operating in that geographic area or that any Business benefits directly or in proportion to its Internet Advertising Fund contribution from the development or placement of advertising and marketing materials. Franchisor has the right, but no obligation, to use collection agents and institute legal proceedings to collect Internet Advertising Fund contributions at the Internet Advertising Fund's expense. Franchisor also may forgive, waive, settle and compromise all claims by or against the Internet Advertising Fund.
Franchisor may at any time defer or reduce the Internet Advertising Fund contributions of a Canine Dimensions Business and may reduce or suspend Internet Advertising Fund contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the Internet Advertising Fund. If Franchisor terminates the Internet Advertising Fund, Franchisor will distribute all unspent monies to all Canine Dimensions Businesses (whether franchised or operated by Franchisor or its affiliates) who contributed to it during the preceding twelve (12) month period.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees must pay a monthly advertising fee of $1,000. This fee is designated for an Internet Advertising program managed by Canine Dimensions. The funds collected are pooled into an Internet Advertising Fund, which Canine Dimensions administers.
Canine Dimensions intends to use this fund to enhance brand recognition and customer patronage for all Canine Dimensions businesses. While the goal is to develop advertising and marketing materials and programs that benefit all franchisees, Canine Dimensions is not obligated to ensure that the expenditure of these funds is directly proportional to the contributions from franchisees in any specific geographic area. This means that some franchisees may not see direct benefits from the fund that are equal to their contributions.
Canine Dimensions retains the right to use collection agents or legal proceedings to collect unpaid advertising fees, and these costs will be borne by the Internet Advertising Fund. Canine Dimensions also has the discretion to forgive, waive, settle, or compromise claims related to the fund. Furthermore, Canine Dimensions can defer, reduce, suspend, or even terminate the Internet Advertising Fund. If the fund is terminated, any unspent money will be distributed to all Canine Dimensions businesses that contributed to it during the preceding 12 months.
Prospective franchisees should consider that while the advertising fee is mandatory, the benefits derived from the Internet Advertising Fund may not be directly proportional to their individual contributions. It is also important to note that Canine Dimensions has significant discretion in how the fund is managed and can modify or terminate it, which could impact the advertising support received by franchisees.