Does Canine Dimensions permit franchisees to solicit business outside of their Protected Territory?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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You may not relocate your Franchised Business without our consent, which will not be unreasonably withheld. Your new location must be within your Protected Territory, except that if you choose to move your home to a location outside of your Protected Territory, we may require you to obtain rented space within the Protected Territory from which to operate the Franchised Business. If you do relocate your Franchised Business, your territorial boundaries will not change.
You may provide services only to customers and prospective customers who live in your Protected Territory. You may not engage in any promotional activities or sell any products or services, directly or indirectly, through or on the Internet, the World Wide Web, or any other alternative distribution channels (collectively, "Alternative Distribution Channels") directed sent or directed to customers or prospective customers located outside of your Protected Territory. While you may place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located within your Protected Territory, you will not be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television and radio, are viewed by prospective customers
outside of your Protected Territory. You have no options, rights of first refusal, or similar rights to acquire additional franchises.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 27–28)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees are restricted in their ability to relocate their business outside of their protected territory. While the document does not explicitly state whether franchisees can solicit business outside their protected territory, it does state that Canine Dimensions retains rights to operate and grant others the right to operate Canine Dimensions businesses outside a franchisee's protected territory.
Specifically, Canine Dimensions reserves the right to offer and sell goods and services, identical or similar to those offered by franchisees, through various channels of distribution both inside and outside the protected territory. These channels include retail stores, the Internet, and electronic media. This means that Canine Dimensions can compete with its own franchisees, even within their protected territories, through alternative distribution methods.
Furthermore, the FDD states that franchisees may not relocate their franchised business without the consent of Canine Dimensions, and any new location must be within the protected territory. An exception exists if a franchisee moves their home outside the protected territory, in which case Canine Dimensions may require the franchisee to obtain rented space within the protected territory to operate the franchised business. However, even if the franchisee relocates within the protected territory, the original territorial boundaries remain unchanged.
In summary, while the Canine Dimensions FDD does not directly address soliciting business outside the protected territory, it emphasizes the franchisor's rights to operate and sell goods and services outside of it, and restricts the franchisee's ability to relocate outside the protected territory. A prospective franchisee should seek clarification from Canine Dimensions regarding the specific rules about soliciting business outside of their designated territory to fully understand the scope of their operational limitations.