After the Canine Dimensions franchise agreement terminates, is the franchisee prohibited from employing or contracting with personnel of the franchisor?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
A. ACKNOWLEDGMENT OF CONFIDENTIAL INFORMATION
-
- Employee acknowledges and agrees that Employer is engaged in a highly competitive business and that Employer and Franchisor (as defined below) possess trade secrets, confidential and proprietary information (the "Confidential Information") which have been acquired, developed and maintained at considerable cost to Employer and Franchisor, which is not generally known outside the companies, and which, if disclosed to a competitor, would be harmful to Employer and/or Franchisor. For the purposes of this Agreement, "Franchisor" shall be defined to include Canine Dimensions Franchising, LLC, whose principal place of business is 23208 Sanabria Loop, Bonita Springs, Florida 34135. This Confidential Information includes, but is not limited to the following:
- a. price lists and marketing plans and strategies;
- b. proprietary computer software functions, capabilities, code, manuals, fixes, work arounds, revision plans, etc.;
- c. customer lists, customer identities, customer contacts and customer preferences (including identities and plans for approaching potential customers);
- d. any and all information contained in the Confidential Manual;
- e. all forms, instructions, processes, procedures, graphics, pictures, diagrams associated with operation of the Franchised Business;
- f. suppliers and vendors of Franchisor.
-
- Employee understands and acknowledges that during the course of his employment by the Employer he has learned of, will learn of (and may develop), and has and will have access to Confidential Information of the Employer and Franchisor in order to properly and effectively discharge his duties.
-
- Employee hereby agrees that at all times, both during Employee's employment and after the termination thereof (for whatever reason, and whether voluntary or not), Employee will maintain the secrecy and confidentiality of the Confidential Information and that he will not reveal, disclose, divulge or make known to any person or entity, or copy or use for his own account, any of the Confidential Information as defined above.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Canine Dimensions Franchise Disclosure Document, the document does not explicitly state whether a franchisee is prohibited from employing or contracting with personnel of the franchisor after the franchise agreement terminates. However, the agreement does address the franchisee's obligations regarding confidential information, which could indirectly impact their ability to hire or contract with individuals who have knowledge of Canine Dimensions' trade secrets and proprietary information.
Specifically, the Canine Dimensions franchise agreement emphasizes the importance of maintaining the secrecy and confidentiality of the franchisor's Confidential Information, which includes price lists, marketing plans, proprietary software, customer lists, and operational processes. This obligation extends both during and after the termination of the franchisee's employment. The franchisee agrees not to reveal, disclose, divulge, or make known to any person or entity, or copy or use for their own account, any of the Confidential Information.
While there is no direct prohibition on hiring or contracting with the franchisor's personnel, a franchisee needs to be aware of the restrictions related to confidential information. Hiring someone who possesses such information and could potentially disclose or misuse it might lead to legal issues or breach of contract claims. A prospective franchisee should seek clarification from Canine Dimensions regarding any specific restrictions on hiring former employees or contractors of the franchisor to avoid potential conflicts.