For All Dogs Unleashed, what is the duration of the Guaranty?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
While I am an Owner of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration (without renewal) of the Franchise Agreement, whichever occurs first), I will not:
- (a) Divert or attempt to divert any present or prospective customer of the ALL DOGS UNLEASHED franchised business to any competitor, by direct or indirect inducement or otherwise, provide dog training, grooming, or boarding services to any customer or former customer of the Franchised Business, or do anything to harm the goodwill associated with the Marks and the System;
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, the Guaranty lasts while an individual is an Owner of the Franchisee and for a two-year period after they cease to be an Owner. This two-year period also applies after the termination or expiration (without renewal) of the Franchise Agreement, whichever occurs first.
This means that for as long as someone holds an ownership stake in the All Dogs Unleashed franchise, they are bound by the terms of the Guaranty. Even after they relinquish their ownership or the franchise agreement ends, certain obligations and restrictions continue for an additional two years. This extended period likely covers non-compete clauses and confidentiality agreements, ensuring that former owners do not immediately leverage their knowledge or relationships to harm the All Dogs Unleashed system.
The Guaranty includes stipulations preventing the diversion of customers, soliciting employees, or engaging in competitive businesses within a specified area. These restrictions are in place to protect All Dogs Unleashed's market share and proprietary information. The two-year duration provides a reasonable window for the franchise to adapt to the owner's departure and maintain its competitive edge.
It is important to note that the restriction period will be tolled during any period of noncompliance. This means that if the Owner violates the terms of the Guaranty, the two-year clock pauses, and the restriction period is extended by the length of the violation. This provision incentivizes compliance and ensures that All Dogs Unleashed can enforce the Guaranty effectively.