When are Royalty fees first assessed 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. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Royalty fees are assessed after a franchisee has been operating their franchise for 30 days. The royalty fee is 11% of Gross Sales or a minimum of $250 per week, whichever is greater. These fees are payable every Tuesday via ACH, meaning funds must be available in the franchisee's account for automatic withdrawal.
This means that a new Canine Dimensions franchisee will not owe any royalty payments during their initial startup phase. This grace period can help with cash flow as the franchisee begins to generate revenue. However, after the initial 30 days, franchisees must be prepared to pay either 11% of their gross sales or $250, whichever is higher, every week.
The ACH payment method means that Canine Dimensions will automatically debit the royalty fees from the franchisee's account. Franchisees must ensure that sufficient funds are available to avoid potential penalties or dishonored payment fees. This system provides convenience but requires careful financial management to prevent overdrafts or other issues. Franchisees should also be aware of the definition of "Gross Sales," which includes all revenue from services but excludes discounts, refunds, and sales taxes.