Upon expiration or termination of a Canine Dimensions franchise, does Canine Dimensions have the option to purchase the franchisee's business?

According to Canine Dimensions's 2025 Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, Canine Dimensions has the option to purchase specific assets of the franchisee's business. Specifically, Canine Dimensions has the option to buy the franchisee's personal property, fixtures, equipment, and inventory related to the franchised business.

This clause in the franchise agreement is fairly common, allowing the franchisor to maintain control over assets used in the Canine Dimensions business and potentially transition the location to a new franchisee or corporate ownership. It ensures that branded items and essential equipment remain within the Canine Dimensions system, preserving brand consistency.

However, the FDD excerpt does not specify the terms or conditions under which Canine Dimensions can exercise this purchase option. For example, the FDD does not detail how the purchase price for these assets will be determined (e.g., fair market value, depreciated value, or another method). It also does not state whether the franchisee is obligated to sell these assets to Canine Dimensions or if the franchisee has the option to sell to a third party. A prospective franchisee should seek clarification on these points to fully understand their obligations and rights upon termination or expiration of the franchise agreement.