For Canine Dimensions, what is the geographic scope of the employee's non-solicitation obligation after termination?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- Employee agrees, in addition to the provisions of Paragraph C.1. hereof, that for the period of two (2) years following the termination of his employment (for whatever reason and whether voluntary or not) he will not directly or indirectly solicit, entice, divert, lure, pirate, take away or interfere with any of the Employer's or Franchisor's customers, trade, business, patronage, suppliers, employees, agents or consultants within fifty (50) miles of any Franchised Business in the System. As used herein "customers" shall mean: any person, business or entity which either (i) has transacted any business with Employer or Franchisor; or (ii) was actively pursued by the Employer or Franchisor, during the term of Employee's employment, to become a customer of the Employer or Franchisor; or (iii) whose identity became known to Employee as a result of Employee's access to a customer list or other Confidential Information of Employer or Franchisor (including, but not limited to, response cards, target lists, leads, etc.).
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, an employee is subject to certain non-solicitation restrictions following termination of their employment. Specifically, for a period of two years after termination, the employee cannot directly or indirectly solicit, entice, divert, lure, pirate, take away, or interfere with any of Canine Dimensions' or the franchisee's customers, trade, business, patronage, suppliers, employees, agents, or consultants. This restriction applies within a 50-mile radius of any franchised business in the Canine Dimensions system.
The term "customers" is defined broadly to include any person, business, or entity that (i) has transacted business with Canine Dimensions or the franchisee, (ii) was actively pursued by Canine Dimensions or the franchisee to become a customer during the employee's tenure, or (iii) whose identity became known to the employee through access to customer lists or confidential information.
This non-solicitation agreement is designed to protect Canine Dimensions' and its franchisees' customer relationships and confidential information. The broad definition of "customers" and the 50-mile radius restriction highlight the importance Canine Dimensions places on safeguarding its business interests. Prospective franchisees should understand these restrictions and ensure that their employees are aware of and agree to these terms as part of their employment agreements. This is a fairly standard practice in franchising to protect the brand and the franchisees within the system.