Does the Canine Dimensions franchise agreement prohibit franchisees from diverting business from the franchised business to a competitor?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, all rights granted under this Agreement to Franchisee shall immediately terminate. Upon such termination or expiration, Franchisee must comply with the following procedures:
15.1 De-identification
- 15.1.1 Franchisee must immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public that the Franchise is a Canine Dimensions Franchise or hold itself out as a present or former franchisee of Franchisor. Franchisee must comply with the covenants contained in Article 16.
- 15.1.2 Franchisee must immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System; the Mark "Canine Dimensions", and all other Marks and distinctive forms, slogans, signs, symbols, monograms and devices associated with the System, and shall entirely remove all Internet listings, local citations and social media associated with the System. In particular, Franchisee must cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, and any other articles or clothing which display the Marks.
- 15.1.3 Franchisee must take such action as may be necessary to cancel any assumed name or equivalent registration that contains the mark "Canine Dimensions" or any other service mark or trademark of Franchisor, and Franchisee must furnish Franchisor with proof of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
- 15.1.4 Immediately upon termination or expiration of this Agreement, Franchisee must make such modifications or alterations to the Approved Location and Vehicles operated hereunder and shall make such specific additional changes thereto as Franchisor may reasonably request.
- 15.1.5 Franchisee must never use any reproduction, counterfeit, copy, or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake, or deception, or which is likely to dilute Franchisor's rights in and to the Marks. Further, must never use any designation of origin or description or representation that falsely suggests or represents an association or connection with Franchisor.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchise agreement includes stipulations that prevent a franchisee from representing their business as a Canine Dimensions franchise after termination or expiration of the agreement. Specifically, upon termination or expiration, the franchisee must cease operating the Franchised Business and cannot directly or indirectly represent to the public that the Franchise is a Canine Dimensions Franchise or hold themselves out as a present or former franchisee of Franchisor.
Furthermore, the franchisee must discontinue using any confidential methods, procedures, and techniques associated with the Canine Dimensions system, including the trademarked name and all other associated marks. This includes removing all internet listings, local citations, and social media associated with the system and ceasing the use of signs, advertising materials, displays, stationery, forms, and any other articles or clothing which display the marks. The franchisee is also required to cancel any assumed name registrations that contain the "Canine Dimensions" mark and provide proof of compliance to the franchisor within 30 days of termination or expiration.
Additionally, the franchisee must modify or alter the approved location and vehicles used in the business as reasonably requested by Canine Dimensions. The franchisee is prohibited from using any reproduction, counterfeit, copy, or imitation of the marks that could cause confusion or dilute Canine Dimensions's rights to the marks. They also cannot use any designation that falsely suggests an association with Canine Dimensions. These measures collectively ensure that a former franchisee cannot divert business by falsely associating with the Canine Dimensions brand after the franchise agreement ends.