What is a Consent Order, as it relates to the All Dogs Unleashed case in Minnesota?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
TION**
In the Matter of ADU Franchise limited liability company Using the trade name of All Dogs Unleashed: Administrative proceeding, filed by the State of Minnesota Department of Commerce against us following our elective report to the Department stating that, in April 2022, we violated the Minnesota Franchise Act by offering and selling a franchise in Minnesota while our application for registration, filed in December 2021, was still pending. In October 2022, we entered into a Consent Order whereby we agreed to refrain from violating the Minnesota Franchise Agreement, to offer rescission to the franchisee, and to pay a civil penalty in the amount of $
Source: Item 3 — LITIGATION (FDD page 8)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, a Consent Order, in the context of their case in Minnesota, is a legal agreement entered into with the State of Minnesota Department of Commerce in October 2022. This order stemmed from All Dogs Unleashed offering and selling a franchise in Minnesota in April 2022 while their franchise registration application was still pending, which constituted a violation of the Minnesota Franchise Act. The application for registration had been filed in December 2021.
Under the terms of the Consent Order, All Dogs Unleashed agreed to several conditions. First, they committed to refrain from any further violations of the Minnesota Franchise Agreement. Second, they were required to offer rescission, which is the cancellation of a contract, to the franchisee involved in the initial violation. Finally, All Dogs Unleashed was obligated to pay a civil penalty of $1,000 to the State of Minnesota.
For a prospective All Dogs Unleashed franchisee, this Consent Order indicates a past regulatory issue that the company has resolved. While the violation occurred due to an administrative oversight, it's essential to understand the implications of such actions. The fact that All Dogs Unleashed agreed to a Consent Order, offered rescission, and paid a fine suggests a willingness to cooperate with regulatory bodies to resolve issues. However, potential franchisees should carefully review Item 3 of the FDD, which covers litigation, and consider asking All Dogs Unleashed about their current compliance procedures to ensure similar issues are avoided in the future.