Canine Dimensions

The system lost 30% of units in the past year. Can you provide detailed explanations for each of the 9 closures and 8 units that ceased operations in 2024, including whether underperformance was the primary factor?

Royalty rates are 11.0%, significantly higher than the industry typical range of 6.0-7.0%. How does the franchisor justify this premium rate compared to competitors?

Median and average gross sales are substantially below industry norms. Can you provide Item 19 performance data broken down by unit age and location to understand which types of units perform closer to breakeven?

With a 26.7% non-renewal rate, what percentage of franchisees choose not to renew their contracts, and what are their stated reasons for exit?

The contract specifies 14 non-curable defaults allowing immediate termination. Can you list these defaults and provide examples of real situations where they were invoked?

Support and training scores 74/100, below the typical range of 77.5-91.0%. What specific training and ongoing support does the franchisor provide, and how frequently is it delivered?

With median unit sales at $120,545, what is the typical profit margin after royalties (11%), operating expenses, and owner compensation?

The franchise agreement requires personal guarantees from all equity owners with joint and several liability. Under what circumstances has the franchisor pursued personal guarantees against franchisees?

Can you provide the cure periods for all 8 curable defaults mentioned in the termination clause, and explain how they differ from the 5-30 day range disclosed?

Territory is scored 100/100. Can you confirm the exact boundaries of the exclusive territory, how encroachment is monitored, and whether any units have complained about competitive pressure from other franchisees?

The renewal period is 5 years, below the typical industry standard of 10 years. Why does the franchisor structure renewals at 5-year intervals, and what are typical renewal fee negotiations?

System health scores 0/100. What operational, reporting, or infrastructure deficiencies are driving this score, and what remediation plans are in place?

In 2023, the system grew to 30 units, but has since declined. What changes occurred between 2023 and 2024 that triggered such a sharp reversal in performance?

Given the high turnover and closure rates, what is the franchisor's attrition rate target, and how does it compare to five-year performance data?

The litigation history shows zero cases over 3 years. Can you confirm whether this reflects no disputes, or whether disputes are resolved through arbitration or confidential settlement?

What financial performance metrics must units achieve to remain in good standing, and how many current units fall below those thresholds?

The indemnification clause extends to all owners. Can you provide sample scenarios of claims the franchisor has pursued under indemnification, and what costs franchisees ultimately absorbed?

With a 10-year initial term, what exit options exist before the 10-year mark if a franchisee needs to leave the system, and what financial obligations would they face?