During the term of the Canine Dimensions franchise, can a franchisee attempt to divert customers to a competitive business?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | |
|---|---|---|---|
| Franchise Agreement | (g) Prior to the date of transfer, your transferee must complete our training program to our satisfaction. | ||
| n. Franchisor’s right of first refusal to acquire franchisee's business | Section 13.5 | We can match any bona fide written offer for your Franchised Business. | |
| o. Franchisor’s option to | Section 15.4 | Upon expiration or termination, we can buy your personal property, | |
| purchase franchisee's | fixtures, equipment, and inventory related to your Franchised | ||
| business | Business. | ||
| p. Death or disability of franchisee | Section 13.6 | Within thirty (30) days of death or disability, the Franchise must be operated by a person who has been approved by us and passed our Initial Training Program. The Franchise must be transferred to an approved individual or entity within 6 months of death or incapacity. We must approve all transfers. | |
| q. Non-competition | Article 16 | You must not be in a competing business anywhere and must not | |
| covenants during the term of | attempt to divert customers of your Franchised Business to any | ||
| the franchise | competitive business. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Article 16 | You may not divert business to any competitor or employ or contract with any of our or another franchisee’s personnel. In addition, for two years after termination or expiration, you may not have any involvement in a competing business within: (a) 30 miles of your Protected Territory; or (b) 50 miles of any Canine Dimensions Business. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 30–32)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, franchisees are prohibited from attempting to divert customers to a competitive business during the term of the franchise agreement. Specifically, Article 16 of the Franchise Agreement outlines non-competition covenants that franchisees must adhere to during the franchise term.
This restriction means that while operating a Canine Dimensions franchise, a franchisee cannot actively try to attract existing Canine Dimensions customers to a competing business. This is a standard clause in franchise agreements designed to protect the brand and the customer base that the franchise system has worked to establish.
After the franchise agreement expires or is terminated, there are still non-competition covenants in place. For two years post-termination or expiration, a franchisee cannot divert business to any competitor or employ or contract with any of Canine Dimensions's or another franchisee’s personnel. Additionally, they cannot be involved in a competing business within 30 miles of their Protected Territory or 50 miles of any Canine Dimensions Business. This ensures that former franchisees do not unfairly compete using knowledge and resources gained during their time with Canine Dimensions.