After the Canine Dimensions franchise agreement terminates, what is the geographic restriction on operating a competitive business near the Protected Territory?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT F
STATE-SPECIFIC ADDENDUM
ADDENDUM TO THE CANINE DIMENSIONS FRANCHISING, LLC DISCLOSURE DOCUMENT: CALIFORNIA
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- The Franchise Agreement contain covenants not to compete which extend beyond the termination of the agreements. These provisions may not be enforceable under California law.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Canine Dimensions Franchise Disclosure Document, the franchise agreement contains covenants not to compete which extend beyond the termination of the agreements. However, the California State Addendum notes that these provisions may not be enforceable under California law. This means that if a franchisee operates in California, the enforceability of the non-compete clause after termination is uncertain and subject to legal interpretation.
For a prospective Canine Dimensions franchisee, this has significant implications. If the franchisee is located outside of California, the non-compete clause in the franchise agreement may prevent them from operating a similar dog training or related business within a certain geographic area after the franchise agreement ends. The specific terms of this restriction, including the duration and geographic scope, are not detailed in the provided excerpts, but would be found elsewhere in the Franchise Agreement.
It is important for potential franchisees to carefully review the franchise agreement and any state-specific addenda with legal counsel to understand the enforceability of non-compete clauses in their specific location. Franchisees should inquire about the specific geographic radius and time period during which they would be restricted from operating a competing business after the termination of their Canine Dimensions franchise agreement. This information is crucial for making an informed decision about investing in a Canine Dimensions franchise, as it directly impacts their future business opportunities.