Can Canine Dimensions negotiate the terms covered in the Franchise Disclosure Document with prospective franchisees in New York?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SERVICES OR INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions may negotiate terms with prospective franchisees regarding items covered in the Franchise Disclosure Document in New York. However, Canine Dimensions is not allowed to use this negotiation to convince a prospective franchisee to accept terms that are less favorable than those already outlined in the Franchise Disclosure Document.
This means that while there is room for discussion and potential adjustments to the franchise agreement, Canine Dimensions must ensure that the final terms offered to the franchisee are at least as beneficial as the standard terms presented in the FDD. This provision aims to protect franchisees from being pressured into accepting less advantageous conditions during negotiations.
For a prospective Canine Dimensions franchisee in New York, this presents an opportunity to discuss and potentially modify certain aspects of the franchise agreement. However, it's crucial to be aware of the limitations: negotiations cannot result in terms that are worse than those initially disclosed in the FDD. Franchisees should carefully review all negotiated terms and compare them to the original FDD to ensure they are not being disadvantaged.