Over what period does Canine Dimensions ratably recognize the $35,000 balance of initial fees?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
erritory 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
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the company recognizes $12,500 of the initial franchise fee as revenue upon completion of training. The remaining balance of $35,000 is then recognized ratably over either the ten-year or five-year term of the franchise agreement.
For a prospective Canine Dimensions franchisee, this means that while they pay the full initial franchise fee upfront, Canine Dimensions does not immediately recognize all of it as revenue. Instead, they spread the recognition of $35,000 of the fee over the duration of the franchise agreement, which could be either ten or five years.
The specific term (ten years or five years) over which the $35,000 is recognized depends on the specific terms outlined in the franchise agreement. Franchisees should carefully review their agreement to understand the exact period for revenue recognition, as this could impact Canine Dimensions' financial reporting and potentially influence decisions related to the franchise system.