Does All Dogs Unleashed have to approve a transfer among owners of a business entity?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
I own a beneficial interest in the Franchisee and would be considered an "Owner" within the definition contained in the Franchise Agreement.
I will comply with all of the provisions contained in Article 12 of the Franchise Agreement concerning the transfer of my ownership interest in the Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, if you own a beneficial interest in the franchise, you are considered an "Owner" and must comply with Article 12 of the Franchise Agreement regarding the transfer of your ownership interest in the franchisee. This implies that All Dogs Unleashed's approval is required for such transfers. The FDD states that the franchisor will not unreasonably withhold consent to a transfer, but may condition its consent on certain requirements.
These conditions include requesting consent in writing at least 30 days before the proposed transfer, providing a copy of the transfer agreements with sale terms, and ensuring that the franchisor determines the sale terms will not negatively affect the franchised business. The transferee must also meet All Dogs Unleashed's current standards for education, management, and business, possess good moral character, business reputation, and credit rating, demonstrate the aptitude and ability to operate the franchised business, and have sufficient equity capital.
Furthermore, all accrued monetary obligations to All Dogs Unleashed, its affiliates, and third-party suppliers must be up to date and fully paid. The premises must meet All Dogs Unleashed's image requirements for a new facility. Both the transferring party and each owner must execute a general release of claims against All Dogs Unleashed. Finally, the applicable transfer fee must be paid, and All Dogs Unleashed must be reimbursed for all reasonable costs and expenses incurred in facilitating the transfer.
Therefore, a prospective All Dogs Unleashed franchisee should be aware that any transfer of ownership interest within their business entity is subject to the franchisor's approval and specific conditions. Failing to meet these conditions could prevent the transfer from being approved. It is important to carefully review Article 12 of the Franchise Agreement to fully understand the requirements and obligations related to ownership transfers.