For Canine Dimensions, does the employee non-solicitation agreement apply to suppliers of the Employer or Franchisor?
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, the employee non-solicitation agreement does apply to the suppliers of the Employer or Franchisor. Specifically, for a period of 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 suppliers. This restriction applies within fifty (50) miles of any Franchised Business in the System.
This provision means that a former employee is barred from actively trying to recruit or engage the suppliers used by Canine Dimensions or its franchisees. This is designed to protect the established business relationships and supply chains of the franchise system. The term "suppliers" is not specifically defined, so it could potentially include a wide range of vendors providing goods or services to the Canine Dimensions franchise.
For a prospective franchisee, this clause highlights the importance of employee training and confidentiality agreements. It also underscores the value Canine Dimensions places on its supplier relationships. Franchisees should ensure their employees understand these restrictions and the potential legal ramifications of violating them. This non-solicitation agreement aims to maintain stability and prevent unfair competition by former employees leveraging their knowledge of the Canine Dimensions network.