Is Canine Dimensions responsible for ensuring compliance with laws related to the franchised business?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
ty and Assumption of Obligations," attached as "Schedule D."
4.8 Compliance with Laws and Ethical Business Practices
4.8.1 Franchisee shall secure and maintain in force, in its name, all required licenses, permits and certificates relating to the operation of the Franchised Business. Franchisee shall operate its Franchised Business in full compliance with all applicable laws, ordinances and regulations, including, without limitation, workers' compensation insurance, unemployment insurance, and withholding and payment of income taxes, social security taxes and sales taxes. All advertising by Franchisee will be completely factual, in good taste in Franchisor's sole and absolute discretion, and will conform to high standards of ethical advertising. Franchisee will, in all dealings with customers, suppliers and the public,
adhere to high standards of honesty, integrity, fair dealing and ethical conduct. Franchisee will refrain from any business or advertising practice which may be injurious to Franchisor's business and the goodwill associated with the Marks and other Canine Dimensions Businesses. Franchisee will notify Franchisor in writing within five (5) days of the commencement of any action, suit or proceeding, and of the issuance of any order, writ, injunction, award or decree of any court, agency, or other governmental instrumentality, which relates to or which may affect the operation or financial condition of Franchisee and/or its Franchised Business. Franchisee agrees to manage the employment functions of the Franchised Business in compliance with federal, state, and local employment laws.
- 4.8.2 Franchisee and its owners agree to comply, and to assist Franchisor to the fullest extent possible in its efforts to comply with Anti-Terrorism Laws (defined below). In connection with that compliance, Franchisee and its owners certify, represent, and warrant that none of Franchisee's property or interests is subject to being blocked under, and that Franchisee and its owners otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by Franchisee or its owners, or any blocking of Franchisee or its owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for operating their franchised business in compliance with all applicable laws, ordinances, and regulations. This includes securing and maintaining all required licenses, permits, and certificates in the franchisee's name. The franchisee must also comply with laws related to workers' compensation insurance, unemployment insurance, and the withholding and payment of income taxes, social security taxes, and sales taxes.
Furthermore, the franchisee is obligated to manage the employment functions of the franchised business in compliance with federal, state, and local employment laws. They must also adhere to high standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, and the public. The franchisee is required to notify Canine Dimensions in writing within five days of any legal action or governmental order that could affect the operation or financial condition of the franchise.
While the franchisee bears the primary responsibility for legal compliance, they also have an obligation to assist Canine Dimensions in complying with Anti-Terrorism Laws. This includes certifying that none of the franchisee's property or interests are subject to being blocked under these laws. Additionally, the franchisee must comply with the Payment Card Industry Data Security Standards (PCI DSS) if they accept payment by credit and/or debit cards, and demonstrate compliance upon request, potentially through an independent third-party audit.
In the event that the franchisee violates any applicable laws, or breaches any agreement, they are obligated to indemnify Canine Dimensions Franchising, LLC against all losses and expenses arising from the violation. This indemnification extends to the owners of any equity interest in the franchisee. Therefore, while Canine Dimensions requires franchisees to comply with laws, the responsibility for ensuring compliance and bearing the consequences of non-compliance rests primarily with the franchisee.