For Canine Dimensions, does the employee non-compete apply if the employee's termination is involuntary?
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 Co
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the employee non-competition agreement applies regardless of whether the employee's termination is voluntary or involuntary. Specifically, during the term of employment and for two years after termination, the employee cannot engage in any business activity that competes with Canine Dimensions or the franchisee within the protected territory. This restriction applies whether the employee acts as an employee, partner, shareholder, consultant, or in any other capacity.
In addition to the general non-compete clause, the employee is also prohibited from soliciting or interfering with Canine Dimensions' or the franchisee's customers, trade, business, patronage, suppliers, employees, agents, or consultants for two years following termination. This restriction extends to a 50-mile radius of any franchised Canine Dimensions business in the system. The term 'customers' includes anyone who has transacted business with Canine Dimensions or the franchisee, was actively pursued as a customer, or whose identity became known to the employee through access to customer lists.
This means that a Canine Dimensions franchisee must ensure that their employees understand and agree to these non-competition terms as part of their employment. The franchisee needs to be aware that these restrictions are in place to protect the business's interests, and they should take steps to enforce them if necessary. It is important for franchisees to consult with legal counsel to ensure that their employee agreements are compliant with local laws and are enforceable.