After the Canine Dimensions franchise term, what is the geographic restriction regarding operating a competitive dog training business near the Protected Territory?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, a franchisee is subject to a covenant not to compete for two years after the franchise agreement expires or terminates. This restriction prevents the franchisee from engaging in a Competitive Business, which is defined as a business that provides dog training and related services or products similar to those authorized under the Canine Dimensions system and marks.
Specifically, after the term, the franchisee cannot operate a Competitive Business within thirty miles of the Protected Territory. Additionally, the franchisee is restricted from operating a Competitive Business within fifty miles of any other business operated under the Canine Dimensions system.
This non-compete agreement is in place to protect Canine Dimensions's interests in its brand, system, and confidential information, which the franchisee gains access to during the franchise term. It prevents former franchisees from using their knowledge of the Canine Dimensions system to directly compete with the franchisor or other franchisees in close proximity. This type of restriction is common in franchising to maintain brand consistency and protect market share.