Is it permissible to divert business from a Canine Dimensions franchise 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.
- 15.1.6 Franchisee must notify the telephone company and all listing agencies of the termination or expiration of Franchisee's right to use any telephone number and any classified or other telephone directory listings associated with the Marks and shall authorize the transfer of same to
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchise agreement outlines specific obligations and restrictions regarding the operation of the franchised business, particularly concerning the use of Canine Dimensions's marks and system. Franchisees are granted the right to operate a Canine Dimensions franchise and use the brand's marks, authorized products and services, and the system solely in connection with their franchise. This grant is explicitly tied to operating the business in conformity with Canine Dimensions's standards and specifications.
During the term of the franchise agreement, franchisees are required to identify themselves as the owner of the franchised business in conjunction with any use of the marks on invoices, order forms, receipts, and contracts. Franchisees must also include a disclaimer stating that each Canine Dimensions business is independently owned and operated on all business cards, stationery, promotional and advertising materials, websites, and other materials. The right to use the marks is limited to authorized uses under the agreement, and any unauthorized use is considered infringement.
Upon termination or expiration of the franchise agreement, all rights granted to the franchisee immediately terminate. The franchisee must cease operating the franchised business and cannot represent themselves as a current or former Canine Dimensions franchisee. They must also discontinue using any confidential methods, procedures, and techniques associated with the Canine Dimensions system, including the brand's marks. These stipulations suggest that diverting business to a competitor, especially while still operating under the Canine Dimensions name or using its system, would be a breach of the franchise agreement.