Are the covenants not to compete in the Canine Dimensions Franchise Agreement, which extend beyond termination, always enforceable under California law?

According to Canine Dimensions's 2025 Franchise Disclosure Document, the enforceability of non-compete covenants extending beyond the termination of the franchise agreement is uncertain in California. Specifically, the FDD includes a state-specific addendum for California that addresses several legal considerations for franchisees in that state.

This addendum explicitly states that the covenants not to compete, which extend beyond the termination of the agreements, may not be enforceable under California law. This means that if a franchisee leaves the Canine Dimensions system, any restrictions preventing them from competing with Canine Dimensions after the franchise ends might not hold up in court in California.

This is a critical point for prospective franchisees to understand. California law tends to disfavor non-compete agreements, especially those that restrict a person's ability to work after leaving a business. Therefore, a Canine Dimensions franchisee in California might have more freedom to pursue other business ventures after their franchise agreement ends than in other states where such covenants are strictly enforced. It is advisable that prospective franchisees consult with a legal professional to fully understand the implications of this provision in California.