Does Canine Dimensions have a right of first refusal to acquire a franchisee's business?

According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions does possess the right of first refusal to acquire a franchisee's business. Specifically, Canine Dimensions has the ability to match any legitimate written offer that a franchisee receives for their franchised business. This provision is detailed in Section 13.5 of the Franchise Agreement.

For a prospective franchisee, this means that if they decide to sell their Canine Dimensions franchise, they must first offer Canine Dimensions the opportunity to purchase the business on the same terms as any other potential buyer. This right allows Canine Dimensions to maintain control over who enters the franchise system and ensures that the brand's standards and practices are upheld.

It is important for franchisees to understand the implications of this right of first refusal. While it does not prevent a franchisee from selling their business, it does add an extra step to the process. The franchisee must find a willing buyer and negotiate terms, but the sale is contingent on Canine Dimensions declining to exercise its right to purchase the business itself. This could potentially delay or complicate the sale process.

This type of clause is relatively common in franchising, as it allows franchisors to protect their brand and maintain consistency across the franchise network. Franchisees should carefully consider this provision and discuss it with their legal and financial advisors before entering into a franchise agreement with Canine Dimensions.