After termination or expiration of a Canine Dimensions franchise, can a franchisee divert business to a competitor?

Question

Accepted Answer

| 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)

After termination or expiration of a Canine Dimensions franchise, can a franchisee divert business to a competitor?

Answer from 2025 FDD Document

What This Means (2025 FDD)

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.