What is the renewal fee for a Canine Dimensions franchise agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
the ten-year or fiveyear term of the franchise agreement.
The Company also enters into renewals of existing franchise agreements without the requirement for the initial expenses incurred on entering int a new franchise agreement. In this situations, the Company requires a renewal fee of $3,500 and an ongoing monthly royalty fee.
The Company recognizes revenues related to renewal fees ratably over each of the five years of the renewal term based on its obligations to provide limited use of the Company's brand name and logo, supported by marketing activities, and ongoing access to continually upda
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, when franchisees renew their existing agreement, they must pay a renewal fee of $3,500. This renewal process does not require franchisees to incur the initial expenses associated with starting a new franchise. In addition to the renewal fee, franchisees will also be required to pay an ongoing monthly royalty fee.
Canine Dimensions recognizes revenue from renewal fees ratably over the five-year renewal term. This revenue recognition is based on the company's obligation to provide limited use of its brand name and logo, marketing support, and access to an updated operating procedures manual during the renewal period.
For a prospective franchisee, this means that renewing the franchise agreement after the initial term involves a $3,500 renewal fee, along with continued monthly royalty payments. This structure allows Canine Dimensions to maintain a consistent revenue stream while providing ongoing support and resources to its franchisees.