On whose experience is the 'additional funds' estimate based for a Canine Dimensions franchise?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional funds is an estimate of the funds needed to provide you with additional operating capital for other variable costs (e.g., electricity, telephone, Internet service, Internet setup, etc.), paper, cleaning, cellular telephones, and other supplies. You will need a car or van for transportation; however, we anticipate that you will use a motor vehicle that you already own. These expenses do not include payroll costs, as we expect that you will operate your Franchised Business personally. New businesses often generate a negative cash flow. We estimate that the amount given will be sufficient to cover ongoing expenses for the start-up phase of the business, which we calculate to be three months. This is only an estimate and there is no guarantee that additional working capital will not be necessary during this start-up phase or after. In calculating additional funds, we relied on the experience of our Affiliate as the owner and operator, since 2004, of a Canine Dimensions Business like the franchise being offered to you (and its predecessor in interest from 1994-2004).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–14)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the estimate for 'additional funds' is based on the experience of Canine Dimensions' affiliate. The affiliate has been the owner and operator of a Canine Dimensions business similar to the franchise being offered since 2004, and its predecessor in interest from 1994 to 2004.
The 'additional funds' estimate, which ranges from $1,000 to $3,000 for the first three months, covers variable costs such as electricity, telephone, internet service, paper, cleaning, and cellular telephones. These funds are intended to provide franchisees with operating capital during the initial start-up phase when the business may generate a negative cash flow. The FDD notes that these expenses do not include payroll costs, as Canine Dimensions expects the franchisee to personally operate the business.
It's important to note that this is only an estimate, and there is no guarantee that the provided amount will be sufficient to cover all ongoing expenses during the start-up phase or after. Prospective franchisees should carefully review these figures with a business advisor to assess their individual financial needs and circumstances. The FDD also emphasizes that additional funds may be required after the first three months if the business does not generate sufficient sales to produce a positive cash flow.