Can Canine Dimensions reimburse itself from the Internet Advertising Fund for administrative costs?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
We may reimburse ourselves, our authorized representatives, or our affiliates from the Internet Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses associated with the programs funded by the Internet
Advertising Fund. We do not guarantee that advertising expenditures from the Internet Advertising Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Internet Advertising Fund contributions for advertising that is principally a solicitation for the sale of franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing.
We have no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Internet Advertising Fund or to maintain, direct or administer the Internet Advertising Fund. Any unused funds that were collected in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Internet Advertising Fund on any terms we deem reasonable. If the Internet Advertising Fund is terminated, we will return any unused funds in the Internet Advertising Fund to the franchisees who contributed to it during the preceding twelve (12) month period.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–23)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Canine Dimensions can reimburse itself, its authorized representatives, or its affiliates from the Internet Advertising Fund for administrative costs. These costs can include independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses associated with the programs funded by the Internet Advertising Fund.
The FDD states that in the fiscal year 2024, Canine Dimensions collected $499,450 for the Internet Advertising Fund. Of that amount, 4% was used for administrative expenses, while 96% was allocated to the placement of Internet advertising.
The Internet Advertising Fund is not audited, but Canine Dimensions will provide an annual accounting of the fund's expenditures from the previous year if a franchisee submits a written request at least 120 days after the end of the fiscal year. Canine Dimensions retains complete discretion on how the Internet Advertising Fund is utilized and does not guarantee that advertising expenditures will directly benefit any specific franchisee.