Does the All Dogs Unleashed agreement specify that damages alone are sufficient compensation for violating non-competition covenants?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Damage Waiver. Each of the parties EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES; except that this waiver and limitation does not apply with respect to (a) your obligation to indemnify us under any provision of this Agreement, or (b) any claims we bring against you and/or your guarantors and/or your owners for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, unfair competition, breach of your confidentiality or non-competition covenants under this Agreement, and/or any cause of action under the Lanham Act, and we are entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the agreement does not specify that damages alone are sufficient compensation for violating non-competition covenants. Instead, All Dogs Unleashed retains the right to seek multiple damages, attorneys' fees, and all damages as provided by law for breaches of confidentiality or non-competition agreements.
This means that if a franchisee violates the non-competition agreement, All Dogs Unleashed can pursue legal remedies beyond just recovering the direct financial losses they incurred. They can also seek additional damages as determined by law, and the franchisee may be responsible for All Dogs Unleashed's legal fees. This could significantly increase the financial burden on a franchisee found in violation.
This approach is more stringent than simply seeking damages, as it allows All Dogs Unleashed to potentially recover more than just their direct losses and ensures they can cover legal costs associated with enforcing these agreements. Prospective franchisees should be aware of the serious financial implications of violating these covenants, as the penalties could be substantial and include legal fees and multiple damages.