Under what condition is the Canine Dimensions transfer fee waived?
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. |
| Management Fee | $350 per day that we manage your Franchised Business, plus our direct expenses incurred on your behalf | As incurred | Due when we (or a third party) manage your Franchised Business after your death or disability, if you do not make arrangements for a replacement operator |
| Audit Fees | Actual Cost of Audit ($250 minimum), plus the amount of deficiency and applicable late charges | As incurred. | If an audit reveals an understatement of more than 2%, or if you fail to furnish information in a timely fashion, you will pay us twice the deficient amount. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the transfer fee is waived under a specific condition. Typically, Canine Dimensions charges a $10,000 transfer fee, in addition to reasonable attorney's fees, if a franchisee chooses to transfer their Franchise Agreement. This fee is due at the time of the transfer.
However, Canine Dimensions will waive the $10,000 transfer fee for a one-time transfer to a corporate entity. This exception applies only when the franchisee forms a corporation for the convenience of ownership. This means that if a franchisee initially owns the franchise under their personal name and later decides to incorporate the business, Canine Dimensions will not charge the transfer fee for this specific type of transfer.
This waiver can be a significant benefit for franchisees who plan to incorporate their Canine Dimensions business. Incorporating may offer certain legal and financial advantages, such as limited liability and potential tax benefits. By waiving the transfer fee in this scenario, Canine Dimensions reduces the financial burden on franchisees who choose to incorporate, making it easier for them to structure their business in a way that suits their needs.