For Canine Dimensions, does the employee non-solicitation agreement apply to employees of the Employer or Franchisor?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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' 2025 Franchise Disclosure Document, the employee non-solicitation agreement applies to both the Employer and the Franchisor. Specifically, for a period of two years after the termination of employment, an employee cannot 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.
This means that a former employee is restricted from actively recruiting or attempting to move any of these listed parties away from either the specific franchise location (Employer) or the Canine Dimensions franchisor. The term "customers" is defined broadly to include anyone who has transacted business with, was actively pursued by, or whose identity became known to the employee through access to customer lists or confidential information of either the Employer or Franchisor.
This non-solicitation clause is designed to protect Canine Dimensions' established relationships and prevent unfair competition from former employees who may have gained knowledge or access to sensitive information during their employment. It is a fairly standard practice in franchising to include such clauses to safeguard the franchise system's stability and goodwill. The 50-mile radius restriction is also typical to prevent immediate competition within the franchise's operating area.
Canine Dimensions, or the employer, and the employee acknowledge that breaching this agreement would cause irreparable harm, entitling the Employer or Franchisor to seek injunctive relief in court to prevent further breaches, in addition to any other legal remedies available. This highlights the importance Canine Dimensions places on protecting its relationships and confidential information within the franchise system.