What geographic restriction applies to Central Bark Doggy Day Care franchisees after a transfer?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | | MUFA - 8.1 | No diverting business; no appropriating the System Standards for use in other business endeavors; no ownership interest in, or performing services for, or leasing premises to, competitive businesses anywhere ("competitive business" means any business operating, or granting franchises or licenses to others to operate, (i) a facility offering day care, boarding, grooming, or training for canines, or any other related canine services, or (ii) a retail facility whose gross receipts from the sale of canine related products represent, at any time, at least 10% of the business' total gross receipts) | | r. Non-competition covenants after the franchise is terminated or expires | FA - XVI.D. | No direct or indirect ownership interest in, or performing services for, or leasing premises to, or diverting business to, competing businesses for 2 years at your Franchised Business, within 10 mile radius of your Franchised Business or 10 mile radius of any CENTRAL BARK facility (same restrictions apply after transfer) No direct or indirect ownership interest in, or performing services | | | MUFA - | for, or leasing premises to, or diverting business to, competing | | | 8.1 | businesses for 2 years within the Multi-Unit Territory or within a | | Provision | Section in franchise agreement, multi-unit franchise agreement, or other agreement | Summary | | | | |------------------------------------------------------|---------
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 38–42)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, a geographic restriction applies to franchisees after a transfer. Specifically, the non-competition covenant restricts the franchisee from having a direct or indirect ownership interest in, performing services for, leasing premises to, or diverting business to, competing businesses for two years. This restriction applies within the Multi-Unit Territory or within a 10-mile radius of any Central Bark Doggy Day Care facility. This restriction remains in effect after a transfer of the franchise.
This means that if a franchisee transfers their Central Bark Doggy Day Care franchise, they are still bound by the non-compete agreement. They cannot engage in any competing business activities within the specified geographic areas for the two-year period. This could significantly limit their business opportunities in the dog care industry after selling their franchise.
The restriction applies to both the franchisee's original location and any other Central Bark Doggy Day Care facility within a 10-mile radius. This broad geographic scope could further restrict the franchisee's ability to work in the industry, even if they move to a new location after the transfer. Prospective franchisees should carefully consider these restrictions and how they might impact their future business plans before investing in a Central Bark Doggy Day Care franchise.
It is important to note that the restrictions apply to both Franchise Agreements (FA) and Multi-Unit Franchise Agreements (MUFA). This means that whether a franchisee owns a single unit or multiple units, the non-compete obligations after a transfer remain in effect. Franchisees should seek legal counsel to fully understand the implications of these restrictions and how they apply to their specific circumstances.