Does a Central Bark Doggy Day Care franchisee receive an exclusive territory?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: Territory]
ITEM 12
TERRITORY
Franchise Agreement:
While your Franchise Agreement is in effect and you are not in default, we will not operate or license another CENTRAL BARK facility within your designated territory (the "Designated Area"). The Designated Area will be determined by us and will generally include approximately 20,000 households. It may be defined by a radius around your location, zip codes, municipal boundaries, or natural or man-made features such as rivers or highways, and will be identified on a map attached to your Franchise Agreement. If your site has not been selected at the time of signing, the Designated Area will be established after you secure a site and execute a lease approved by us. Your rights to the Designated Area are not contingent on achieving specific sales volumes or other performance metrics.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We and our affiliates reserve the right to: (1) operate or license CENTRAL BARK facilities outside your Designated Area; (2) operate or license businesses offering similar services under different marks, including within your Designated Area and on such terms and conditions as we deem appropriate; (3) sell branded and non-branded products authorized for CENTRAL BARK facilities under the Marks or other marks through any distribution channel; (4) solicit sales via catalog, direct mail, online platforms, or other means, including within your Designated Area; (5) acquire, merge, combine with, or be acquired by businesses offering similar services, regardless of location and even if such business operates, franchises and/or licenses competitive businesses in the Designated Area; and (6) engage in any other activities not expressly prohibited by the Franchise Agreement. We are not required to pay you if it exercises any of the rights specified above inside or outside your Designated Area. [Item 12: Territory]
Under the MUFA, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may face competition from other franchisees, company-owned outlets, or other brands and distribution channels we control. However, while the MUFA and all related Franchise Agreements remain in effect and you are in compliance, we will not establish or license another CENTRAL BARK facility within your Multi-Unit Territory, except as described below.
Source: Item 12 — Territory (FDD pages 32–34)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, the territory rights granted to a franchisee depend on whether they sign a standard Franchise Agreement or a Multi-Unit Franchise Agreement (MUFA). Under a standard Franchise Agreement, Central Bark Doggy Day Care will not operate or license another facility within the franchisee's designated territory, referred to as the "Designated Area," as long as the agreement is in effect and the franchisee is not in default. This Designated Area typically includes approximately 20,000 households and may be defined by a radius, zip codes, municipal boundaries, or natural features. However, franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other brands and distribution channels controlled by Central Bark Doggy Day Care.
For franchisees entering into a Multi-Unit Franchise Agreement, they will not receive an exclusive territory. These franchisees may face competition from other franchisees, outlets that Central Bark Doggy Day Care owns, or from other channels of distribution or competitive brands that Central Bark Doggy Day Care controls. However, while the MUFA and all related Franchise Agreements remain in effect and the franchisee is in compliance, Central Bark Doggy Day Care will not establish or license another Central Bark Doggy Day Care facility within the franchisee's Multi-Unit Territory, with some exceptions.
Central Bark Doggy Day Care retains several rights, even within a franchisee's Designated Area or Multi-Unit Territory. These rights include operating or licensing businesses offering similar services under different marks, selling branded and non-branded products through any distribution channel, soliciting sales via various platforms, and acquiring or merging with businesses offering similar services, even if they compete within the franchisee's territory. These stipulations mean that while Central Bark Doggy Day Care provides some territorial protection, it also retains considerable flexibility to operate and expand its business, potentially creating competition for franchisees.