For Canine Dimensions, does the employee's non-compete apply if the termination of employment is voluntary?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
scovery, etc. shall be and remain the sole and exclusive property of the Employer or Franchisor, as the case may be.
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 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.
E. MISCELLANEOUS
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the employee non-compete agreement applies regardless of whether the termination of employment is voluntary or not. Specifically, the employee is restricted from engaging in any competitive business activity within the protected territory for two years after termination, irrespective of the reason for termination. This restriction applies whether the employee leaves voluntarily or is terminated by the employer.
In addition to the restriction on competitive business activities, the employee is also prohibited from soliciting or interfering with Canine Dimensions's customers, suppliers, employees, agents, or consultants within a 50-mile radius of any franchised business in the system for two years following termination, regardless of whether the termination was voluntary or not. The term "customers" is defined broadly to include anyone who has transacted business with Canine Dimensions, was actively pursued as a customer, or whose identity became known to the employee through access to customer lists or confidential information.
This non-compete agreement highlights the importance Canine Dimensions places on protecting its business interests and confidential information. Prospective franchisees should carefully review these restrictions and understand their implications for any employees they hire. It is also important to note that the franchisor and employer have the right to seek injunctive relief to prevent any breach of these covenants, in addition to any other legal remedies available.