Does Canine Dimensions have the right to engage in any business activities not expressly prohibited by the Franchise Agreement within my Protected Territory?

According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions retains significant rights within and outside a franchisee's protected territory. Specifically, Canine Dimensions has the right to engage in any business activities not expressly prohibited by the Franchise Agreement, both within and outside the franchisee's Protected Territory. This means that unless the Franchise Agreement specifically forbids a certain activity, Canine Dimensions can pursue it, even within the area designated as the franchisee's exclusive territory.

This clause has important implications for prospective franchisees. While franchisees are granted a Protected Territory, Canine Dimensions maintains broad discretion to operate and authorize others to operate similar businesses through different channels of distribution, including retail stores and the Internet. Canine Dimensions can also engage in other business activities not explicitly prohibited by the Franchise Agreement within the Protected Territory.

This also extends to the possibility of Canine Dimensions merging with or being acquired by a business that competes with the franchisee, as long as that business does not operate under Canine Dimensions's trademarks within the franchisee’s Protected Territory. Franchisees should be aware that Canine Dimensions is not obligated to compensate them for exercising these rights within their Protected Territory, and the continuation of territorial rights does not depend on achieving a certain level of sales.