Where in the Canine Dimensions franchise agreement can I find information about covenants not to compete?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2 Covenants Not to Compete, Divert Business, or Solicit
Franchisee acknowledges that, pursuant to this Agreement, Franchisee will receive valuable specialized training and Confidential Information, including, without limitation, information regarding the operational, sales, promotional and marketing methods and techniques of Franchisor and the System. Franchisee covenants that: (a) during the Term; and (b) for a continuous uninterrupted period of two (2) years commencing upon the expiration or termination of this Agreement (regardless of the cause for termination or expiration), Franchisee will not, except as otherwise approved in writing by Franchisor, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, or legal entity:
- 16.2.1 Own, maintain, operate, engage in, be employed by, or have any interest in any business which provides dog training and related services or products similar to the Authorized Services or Products offered under the System and Marks (a "Competitive Business") that is:
- 16.2.1.1 During the Term, located anywhere in the world.
- 16.2.1.2 After the Term, located: (a) within thirty (30) miles of the Protected Territory; or (b) within fifty (50) miles of any other business operated under the System.
- 16.2.2 Divert or attempt to divert any business or client of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Marks and the System.
- 16.2.3 After the Term, employ or contract with, or seek to employ or contract with any officer, director, Associate, or other personnel of Franchisor or any Associate of any other franchisee or developer of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, details regarding covenants not to compete are found in Section 16.2 of the franchise agreement. This section outlines the restrictions placed on franchisees both during the term of the agreement and for a period after its expiration or termination.
During the franchise term, a franchisee is prohibited from owning, maintaining, operating, engaging in, being employed by, or having any interest in any business that provides dog training and related services or products similar to those offered under the Canine Dimensions system anywhere in the world, unless otherwise approved by the franchisor in writing. After the term, the restrictions apply for two years, limiting involvement in competitive businesses within thirty miles of the franchisee's protected territory or within fifty miles of any other Canine Dimensions business.
Additionally, franchisees are prohibited from diverting or attempting to divert business or clients of the franchised business to any competitor, or from employing or contracting with any officer, director, associate, or other personnel of Canine Dimensions or any associate of any other franchisee or developer of Canine Dimensions after the term. These covenants aim to protect Canine Dimensions' confidential information, goodwill, and market position.