How must Royalty Fees and other fees be paid to Canine Dimensions?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
y, Franchisee's clients, so long as Franchisor approved of any such coupons prior to their issuance or use by Franchisee.
5.5 Submitting Payments; Late Payment Fees
- 5.5.1 All Royalty Fees and other fees payable under this Agreement must be made via electronic funds transfer or automatic debit of funds, in a method determined by Franchisor, in its sole discretion. Franchisee must sign and deliver to Franchisor any documents required to authorize Franchisor to debit Franchisee's business checking account automatically for the Royalty Fee and other amounts due under this Agreement. On or before the day and time Franchisor specifies (currently, 5:00 P.M. eastern time on the first Wednesday of each month), Franchisee must report to Franchisor by telephone or electronic means or in written form, as Franchisor directs, the true and correct Gross Sales of the Franchised Business for the previous fiscal month. Franchisor will debit Franchisee's account for the Royalty Fee and any other fees due on the Tuesday of each week for the prior week ending Saturday. Franchisee agrees to make the funds available for withdrawal by electronic transfer before each due date. In the event that the Tuesday is not a business day, Franchisor will debit Franchisee's account on the next business day.
- 5.5.2 If Franchisee fails to report the Gross Sales of the Franchised Business on or before the day specified by Franchisor, then Franchisor may:
- 5.5.2.1 Debit Franchisee's account for one hundred twenty percent (120%) of the last Royalty Fee that it debited. If the Royalty debited from Franchisee's account is less than the Royalty Fee Franchisee actually owes to Franchisor (once Franchisor has determined the true and correct Gross Sales of the Franchised Business), Franchisor will debit Franchisee's account for the balance of the Royalty Fee due on the day Franchisor specifies. If the Royalty Fee debited from Franchisee's account is greater than the Royalty Fee actually owed, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following week.
- 5.5.2.2 Debit Franchisee's account a non-refundable late reporting fee of forty-
- 5.5.2.1 Debit Franchisee's account for one hundred twenty percent (120%) of the last Royalty Fee that it debited. If the Royalty debited from Franchisee's account is less than the Royalty Fee Franchisee actually owes to Franchisor (once Franchisor has determined the true and correct Gross Sales of the Franchised Business), Franchisor will debit Franchisee's account for the balance of the Royalty Fee due on the day Franchisor specifies. If the Royalty Fee debited from Franchisee's account is greater than the Royalty Fee actually owed, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following week.
five dollars ($45.00).
- 5.5.3 To encourage prompt and timely payment of the Royalty Fees and to cover the costs and expenses involved in handling and processing any payments not received by their due dates, Franchisee shall pay a fee of $45.00 for any ACH transfer that is returned by the bank, and shall also pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Such charge shall accrue from the date payment was due until the date payment is actually received by Franchisor. Each failure by Franchisee to report its Gross Sales to Franchisor, or to pay the Royalty Fees or other payments payable to Franchisor when due, will be a material breach of this
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, all Royalty Fees and other fees payable must be made via electronic funds transfer or automatic debit of funds, using a method determined by Canine Dimensions. The franchisee is required to sign and deliver any documents needed to authorize Canine Dimensions to debit the franchisee's business checking account automatically for these fees.
On or before 5:00 P.M. eastern time on the first Wednesday of each month, the franchisee must report the Gross Sales of the Franchised Business for the previous fiscal month to Canine Dimensions. Canine Dimensions will then debit the franchisee's account every Tuesday for the prior week ending Saturday. If a franchisee fails to report their gross sales on time, Canine Dimensions may debit the account for 120% of the last royalty fee debited, along with a $45 late reporting fee.
If the Royalty debited from Franchisee's account is less than the Royalty Fee Franchisee actually owes to Franchisor, Canine Dimensions will debit Franchisee's account for the balance of the Royalty Fee due on the day Franchisor specifies. If the Royalty Fee debited from Franchisee's account is greater than the Royalty Fee actually owed, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following week.
To encourage prompt and timely payment of the Royalty Fees, Franchisee shall pay a fee of $45.00 for any ACH transfer that is returned by the bank, and shall also pay, upon demand, interest on any overdue amount equal to the lesser of: (i) one and one-half percent (1.5%) per month; or (ii) the highest rate permitted by law. Each failure by Franchisee to report its Gross Sales to Franchisor, or to pay the Royalty Fees or other payments payable to Franchisor when due, will be a material breach of this Agreement, except if the lateness is the result of Franchisor's failure to debit Franchisee's account in a timely manner.