For Canine Dimensions, does the employee non-solicitation agreement apply to potential customers who were actively pursued by the Employer or Franchisor?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the employee non-solicitation agreement does apply to potential customers who were actively pursued by the Employer or Franchisor. The agreement states that for two years following 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.
The FDD defines "customers" to include any person, business, or entity that 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.).
This means that a former employee is restricted from soliciting not only existing customers but also potential customers that the Canine Dimensions franchisee or franchisor was actively trying to acquire during the employee's tenure. This non-solicitation clause extends to a 50-mile radius of any Franchised Business in the System. This clause aims to protect the franchisee's and franchisor's investment in customer acquisition and maintain business relationships within the Canine Dimensions system.