During the term of the Canine Dimensions franchise, where is a franchisee prohibited from engaging in a competing 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. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 30–32)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is prohibited from engaging in a competing business anywhere. The FDD specifies that franchisees must not be involved in a competing business in any location and must not attempt to divert customers to any competitive business.
This non-compete clause is quite broad, meaning that while operating a Canine Dimensions franchise, a franchisee cannot own, operate, or be involved in any other business that offers similar services, regardless of the location. This restriction aims to protect Canine Dimensions's market share and prevent franchisees from using the franchisor's resources and reputation to benefit a competing venture.
It is important for prospective franchisees to fully understand the implications of this restriction. It prevents them from having any side businesses or investments in related industries during the term of their franchise agreement. Franchisees should seek legal counsel to fully understand the scope and enforceability of this clause in their specific jurisdiction.