factual

After termination or expiration of a Canine Dimensions franchise, can a franchisee employ or contract with personnel of the franchisor or another franchisee?

Canine_Dimensions Franchise · 2025 FDD

Answer 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, Article 16 addresses non-competition covenants after the franchise is terminated or expires. It states that a franchisee may not employ or contract with any of Canine Dimensions's or another franchisee’s personnel after termination or expiration of the franchise agreement.

In addition to the restriction on employing or contracting with personnel, for two years after termination or expiration, a franchisee may not have any involvement in a competing business within (a) 30 miles of their Protected Territory, or (b) 50 miles of any Canine Dimensions Business. This means a former franchisee is restricted from operating or being involved with a competing business within these geographic boundaries for the specified time period.

These restrictions are typical in franchise agreements to protect the brand and other franchisees from unfair competition by former franchisees who have gained knowledge and experience operating within the Canine Dimensions system. Prospective franchisees should carefully consider these limitations and how they might impact their future career options if they decide to leave the Canine Dimensions system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.