What constitutes 'noncompliance' that would toll the non-compete period for an All Dogs Unleashed franchise owner?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
This restriction will be tolled during any period of my noncompliance.
I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Guaranty.
If all or any portion of a covenant in this Guaranty is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an un-appealed final decision to which Franchisor is a party, I expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the non-compete agreement is tolled during any period of noncompliance. For a departing owner, the non-compete agreement lasts for two years from the date they cease to be an owner.
Noncompliance includes actions such as employing or attempting to employ anyone who has been a salaried managerial employee of All Dogs Unleashed or its affiliates within the last 30 days, or inducing such a person to leave their employment. It also includes owning, maintaining, advising, operating, being employed by, making loans to, investing in, providing assistance to, or having any interest in or association with a Competitive Business. A Competitive Business is defined as any business providing dog training, grooming, daycare, or boarding services, or offering licenses or franchises for such businesses.
The non-compete applies while the individual is an owner and for two years afterward. This restriction applies to any location within the United States, its territories, or any other country where All Dogs Unleashed or its affiliates have used, sought registration of, or registered their trademarks, or operate or license others to operate a business under similar marks. After ceasing to be an owner, the restriction applies to locations within the Service Area or within 25 miles of its perimeter, or within the service area of any other All Dogs Unleashed business in existence or under development at the time the individual ceases to be an owner.
This means that if a former All Dogs Unleashed franchisee engages in any of the prohibited activities, the two-year non-compete period will be extended by the length of time they are in noncompliance. This could significantly delay their ability to operate a competing business or work for a competitor without violating the franchise agreement.