Under what conditions is a Canine Dimensions franchisee considered to be operating on a month-to-month basis after the term of the agreement?

According to Canine Dimensions's 2025 Franchise Disclosure Document, a franchisee is considered to be operating on a month-to-month basis if they continue to operate the franchised business beyond the term of the agreement or any subsequent renewal period. In this situation, the franchisee operates under the terms of the original agreement, but they lose the right to obtain a Successor Franchise Agreement.

This holdover situation provides Canine Dimensions with flexibility. It allows them to continue receiving royalties and fees from a franchisee while they decide whether to offer a renewal or find a new franchisee for the territory. For the franchisee, operating on a month-to-month basis creates uncertainty, as Canine Dimensions can terminate the arrangement with limited notice.

It is important to note that while operating on a month-to-month basis, the franchisee is still bound by the terms of the original franchise agreement. However, the critical difference is the loss of the right to a successor franchise agreement, which removes the franchisee's assurance of long-term business continuation under the Canine Dimensions brand.