For Canine Dimensions, what is the duration of the employee's non-solicitation obligation after termination of employment?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.).
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, an employee is subject to a non-solicitation obligation for a period of two years after the termination of their employment, regardless of the reason for termination (voluntary or involuntary). This restriction prevents the employee from directly or indirectly soliciting, enticing, diverting, luring, or interfering with Canine Dimensions' customers, trade, business, patronage, suppliers, employees, agents, or consultants. The non-solicitation area extends to within fifty miles of any franchised Canine Dimensions business in the system.
This non-solicitation clause has significant implications for potential Canine Dimensions franchisees. It ensures that franchisees are protected from former employees potentially poaching their customers or staff. The broad definition of "customers" includes not only those who have transacted business with Canine Dimensions but also those who were actively pursued as customers or whose identity became known to the employee through access to customer lists or confidential information.
For a prospective franchisee, this clause offers a degree of security, knowing that employees are restricted from leveraging their knowledge and contacts gained during their employment to compete against the franchise within a defined geographical area for a specified period. Franchisees should ensure that their employees are aware of these obligations to maintain the integrity of the business and protect their investment. This is a fairly standard practice in franchising to protect the franchisor and franchisee's business interests.