Under what condition is the Transfer Fee applicable 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. We will not charge a fee for a one-time transfer to a corporate entity formed by you for the convenience of ownership. |
| Additional Training | $350 per day, plus the costs of transportation, lodging and meals | 15 days after billing | If you request additional training on-site (for you or for an additional owner), or if we determine that you would benefit from additional on-site training, you must pay our then current per diem rate per trainer, and reimburse our trainer's costs for providing the on-site training, including travel, lodging and meals. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, a Transfer Fee of $10,000 plus reasonable attorney's fees is applicable if a franchisee chooses to transfer their Franchise Agreement. This fee is paid at the time of the transfer.
However, Canine Dimensions specifies an exception to this fee. A franchisee will not be charged a transfer fee for a one-time transfer to a corporate entity that they form for ownership convenience.
This is a fairly standard practice in franchising, as franchisors typically want to ensure they are compensated for the administrative and legal work involved in transferring a franchise to a new owner. The exception for transfers to a franchisee's own corporate entity is also common, as it is simply a change in ownership structure rather than a sale to an unrelated third party.