Who must enter into a personal guaranty agreement for each All Dogs Unleashed facility?
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 understand that, were it not for this Personal Guaranty and Undertaking (the "Guaranty"), Franchisor would not have agreed to enter into the Franchise Agreement with the Franchisee.
I will comply with the provisions contained in Article 7 of the Franchise Agreement concerning the Franchisee's use of Franchisor's Marks and Copyrighted Works (as each term is defined in the Franchise Agreement).
I understand that, except for the license granted to the Franchisee, I have no individual right to use the Marks or Copyrighted Works, and I have no ownership interest in the Marks or Copyrighted Works.
I will comply with all of the provisions contained in Article 8 of the Franchise Agreement concerning the use of the Confidential Information.
I will maintain the confidentiality of all Confidential Information disclosed to me.
I agree to use the Confidential Information only for the purposes authorized under the Franchise Agreement.
I further agree not to disclose any of the Confidential Information, except (a) to the Franchisee's employees on a need-to-know basis, (b) to the Franchisee's and my legal and tax professionals to the extent necessary for me to meet my legal obligations, and (c) as otherwise may be required by law.
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.
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 Franchise Disclosure Document, any individual considered an "Owner" with a beneficial interest in the franchisee entity must provide a personal guaranty. All Dogs Unleashed requires this guaranty to agree to enter into a Franchise Agreement with the Franchisee.
This personal guaranty ensures that the Owner will comply with specific provisions of the Franchise Agreement, including those related to the use of All Dogs Unleashed's Marks and Copyrighted Works, maintaining the confidentiality of sensitive information, and adhering to transfer restrictions on their ownership interest in the Franchisee. The Owner also agrees to not divert customers or harm the goodwill associated with the All Dogs Unleashed brand while they are an Owner and for a two-year period after they cease to be an Owner.
By signing the personal guaranty, the Owner acknowledges that they have no individual right to use the Marks or Copyrighted Works, except for the license granted to the Franchisee, and that they have no ownership interest in them. This guaranty is a critical component of the franchise agreement, providing All Dogs Unleashed with additional security and recourse in case of franchisee non-compliance or default. The Owner is essentially agreeing to be personally liable for certain obligations of the franchisee, which is a common practice in franchising to ensure commitment and accountability.