Who must be included in the non-competition covenant in favor of Central Bark Doggy Day Care?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee's owners shall have executed a noncompetition covenant in favor of Franchisor and the transferee agreeing that, for a period of two (2) years commencing on the effective date of the transfer, Franchisee, Franchisee's owners and members of the immediate families of Franchisee, and each of Franchisee's owners, will not hold any direct or indirect interest as a disclosed or beneficial owner, investor, partner, member, stockholder, director, officer, manager, employee, consultant, representative or agent, or in any other capacity, in a Competitive Business located or operating within the Designated Area or within ten (10) miles of any Central Bark Facility operated by Franchisor, Franchisor's affiliates, or other franchisees of Franchisor;
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, the non-competition covenant extends to the franchisee, the franchisee's owners, and members of their immediate families. This means that these individuals are restricted from engaging in competitive business activities under certain conditions.
Specifically, these individuals are prohibited from holding any direct or indirect interest in a Competitive Business. This includes being an owner, investor, partner, member, stockholder, director, officer, manager, employee, consultant, representative, or agent. The restriction applies to Competitive Businesses located or operating within the Designated Area or within ten miles of any Central Bark Facility operated by Central Bark Doggy Day Care, its affiliates, or other franchisees.
The non-competition covenant is effective for a period of two years, starting from the effective date of the transfer of the franchise. This provision aims to protect Central Bark Doggy Day Care from unfair competition by preventing those closely associated with the franchise from leveraging their knowledge and experience to benefit a competing business within a defined geographic area.