How must the Royalty fee be paid for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 11% of Gross Sales or the Minimum Royalty ($250 per week), whichever is greater. (Note 2) | Payable on Tuesday of each week, via ACH (Note 3) | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. Royalties will be assessed after you have been operating for 30 days. |
| Internet Advertising | $1,000 per month. | Payable monthly on the st day of each month, via 1 ACH | You must participate in our Internet marketing program (which we administer for you). |
| Transfer Fee | $10,000, plus our reasonable attorneys' fees related to such transfer | At the time of transfer | Applicable only if you choose to transfer your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the Royalty fee is 11% of Gross Sales or a minimum of $250 per week, whichever is greater. Gross Sales includes all revenue from services and other income related to the franchise, but excludes discounts, refunds, and sales or use taxes.
The Royalty fee must be paid on Tuesday of each week via ACH (Automated Clearing House), meaning it is payable by automatic debit. Funds must be available in the franchisee's account for withdrawal. Royalty fees are assessed after the franchisee has been operating for 30 days.
If a franchisee fails to report their Gross Sales, Canine Dimensions may debit their account for 120% of the last Royalty debited on the date the Royalty is due. If the debited amount is less than what is actually owed, Canine Dimensions will debit the account for the remaining balance. Conversely, if the debited amount is more than what is owed, the excess will be credited against the amount debited the following week. This automatic debit system ensures consistent and timely payments, but franchisees must ensure sufficient funds are available to avoid penalties or dishonored payment fees.