During the term of the Canine Dimensions franchise, can a franchisee be involved in a competing business?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in any competing business during the term of the franchise agreement. Specifically, Article 16 of the Franchise Agreement prohibits franchisees from being involved in a competing business anywhere and from attempting to divert customers to any competitive business. This restriction is a standard practice in franchising to protect the franchisor's brand and customer base.
After the franchise agreement terminates or expires, the restrictions on competition continue for a period of two years. During this post-term period, franchisees are prohibited from diverting business to any competitor or employing or contracting with any personnel from Canine Dimensions or its other franchisees. Furthermore, they cannot have any involvement in a competing business within a specified geographic area: 30 miles of their Protected Territory or 50 miles of any Canine Dimensions Business.
These non-competition covenants are designed to prevent franchisees from using the knowledge and experience gained while operating a Canine Dimensions franchise to unfairly compete with the franchisor or other franchisees after the agreement ends. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities before investing in a Canine Dimensions franchise. Understanding the scope and duration of these covenants is crucial for making an informed decision.