What is the meaning of 'Designated Area' in the Central Bark Doggy Day Care Franchise Agreement?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 'Designated Area' refers to the territory granted to a franchisee under the Franchise Agreement. Central Bark Doggy Day Care will not operate or license another Central Bark Doggy Day Care facility within this designated territory while the Franchise Agreement is in effect and the franchisee is not in default. The Designated Area typically includes approximately 20,000 households.
The Designated Area's boundaries are determined by Central Bark Doggy Day Care and can be defined by various factors, including a radius around the franchisee's location, zip codes, municipal boundaries, or natural or man-made features like rivers or highways. The specific boundaries will be identified on a map attached to the Franchise Agreement. If a site hasn't been selected when signing the agreement, the Designated Area will be established after the franchisee secures a site and Central Bark Doggy Day Care approves the lease. It's important to note that the franchisee's rights to the Designated Area are not dependent on achieving specific sales volumes or other performance metrics.
Despite having a Designated Area, Central Bark Doggy Day Care franchisees do not receive an exclusive territory. They may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Central Bark Doggy Day Care. Central Bark Doggy Day Care and its affiliates reserve the right to operate or license facilities outside the Designated Area, offer similar services under different marks (even within the Designated Area), sell branded and non-branded products through any distribution channel, solicit sales via various means (including within the Designated Area), and engage in business activities not expressly prohibited by the Franchise Agreement. Franchisees will not receive compensation if Central Bark Doggy Day Care exercises any of these rights within or outside their Designated Area.