Does Canine Dimensions reserve the right to derive a profit from arrangements with certain approved suppliers?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to derive a profit from our arrangements with certain approved suppliers, but we have not done so. We have derived revenue from required purchases by franchisees directly from us or our affiliates. There are no caps or limitations on the maximum amount of payments we may receive from our suppliers as the result of franchisee purchases. In our 2024 fiscal year, our total revenue was $387,255.00. Our revenue from the sale of products or services from franchisees for their purchase of branded marketing materials was $12,627.00, which represents approximately 3.3% of the total revenue of the last fiscal year. We do not have any affiliates that derived revenue or other material consideration from required purchases or leases by franchisees in 2023.
Some of our officers own an equity interest in us (the franchisor) and our affiliates, and we may be an approved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–17)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions reserves the right to profit from arrangements with approved suppliers. While they have this right, they state that they have not yet done so. However, Canine Dimensions does derive revenue from franchisees' required purchases directly from Canine Dimensions or its affiliates.
In the 2024 fiscal year, Canine Dimensions's total revenue was $387,255.00. Of that, $12,627.00 came from the sale of products or services from franchisees for their purchase of branded marketing materials. This represents approximately 3.3% of Canine Dimensions's total revenue for that year. The FDD also states that some of Canine Dimensions's officers own an equity interest in the franchisor and its affiliates, and Canine Dimensions may be an approved supplier.
This arrangement is fairly common in franchising, where franchisors often negotiate rebates or other payments from suppliers based on the volume of purchases made by franchisees. For a prospective Canine Dimensions franchisee, this means that the cost of certain supplies or inventory might be higher than if they were able to source them independently. It also highlights the importance of understanding the approved supplier list and the potential financial relationships between Canine Dimensions and those suppliers.