For Canine Dimensions, what is the duration of the employee's non-compete obligation after termination of employment?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
C. NON-COMPETITION
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- Employee acknowledges and agrees that during the term of his employment by the Employer and for a period of two (2) years after the termination of employment (for whatever reason and whether voluntary or not) he will not, on his own behalf nor directly or indirectly (whether as employee, partner, proprietor, shareholder, consultant, volunteer or in any other capacity) on behalf of any other person, business or other entity, engage in any business activity whatsoever which is in competition with any business activity engaged in by Employer or Franchisor within the geographical Protected Territory served by Employer's office where Employee is employed, or which might have the effect of lessening the need for goods or services supplied by Employer or Franchisor in such Protected Territory.
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- Employee agrees, in addition to the provisions of Paragraph C.1. hereof, that for the period of two (2) years following the termination of his employment (for whatever reason and whether voluntary or not) he will not directly or indirectly solicit, entice, divert, lure, pirate, take away or interfere with any of the Employer's or Franchisor's customers, trade, business, patronage, suppliers, employees, agents or consultants within fifty (50) miles of any Franchised Business in the System. As used herein "customers" shall mean: any person, business or entity which either (i) has transacted any business with Employer or Franchisor; or (ii) was actively pursued by the Employer or Franchisor, during the term of Employee's employment, to become a customer of the Employer or Franchisor; or (iii) whose identity became known to Employee as a result of Employee's access to a customer list or other Confidential Information of Employer or Franchisor (including, but not limited to, response cards, target lists, leads, etc.).
D. ENFORCEABILITY
- Employee further acknowledges and agrees that Employer and Franchisor will have no adequate remedy at law if the Employee breaches any provision contained in this Agreement. In the event of any such breach, Employer or Franchisor shall have the right, in addition to any other remedy that it may have, to obtain in any court of competent jurisdiction, injunctive relief to restrain any breach or threatened breach of any covenant contained herein, without necessity of bond.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, an employee is subject to a non-compete agreement for two years after termination of employment. This non-compete applies regardless of the reason for termination, whether voluntary or involuntary. During this two-year period, the employee is prohibited from engaging in any business activity that competes with Canine Dimensions or the employer within the protected territory served by the employer's office where the employee was employed. This restriction extends to activities conducted directly or indirectly, whether as an employee, partner, proprietor, shareholder, consultant, or volunteer.
In addition to the general non-compete clause, for two years post-termination, the employee is also restricted from soliciting, enticing, diverting, or interfering with Canine Dimensions's or the employer's customers, trade, business, patronage, suppliers, employees, agents, or consultants. This restriction applies within a 50-mile radius of any franchised business in the Canine Dimensions system. The term 'customers' includes anyone who has transacted business with Canine Dimensions or the employer, was actively pursued as a customer during the employee's tenure, or whose identity became known to the employee through access to customer lists or confidential information.
The FDD states that Canine Dimensions and the employer would have no adequate legal remedy if an employee breaches the non-compete or non-solicitation provisions. Therefore, Canine Dimensions or the employer has the right to seek injunctive relief from a court to prevent any breach or threatened breach of these covenants, without needing to post a bond. This highlights the importance Canine Dimensions places on protecting its business interests and confidential information through these restrictive covenants.
Prospective franchisees should be aware of these restrictions, as they impact the hiring and management of employees. Franchisees must ensure that their employees understand and agree to these terms as part of their employment contracts. It is also important to note that the enforceability of non-compete agreements can vary by state, so franchisees should consult with legal counsel to ensure compliance with local laws.