In the event of a non-competition covenant violation, can All Dogs Unleashed seek injunctive relief?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Damage Waiver. Each of the parties EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES; except that this waiver and limitation does not apply with respect to (a) your obligation to indemnify us under any provision of this Agreement, or (b) any claims we bring against you and/or your guarantors and/or your owners for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, unfair competition, breach of your confidentiality or non-competition covenants under this Agreement, and/or any cause of action under the Lanham Act, and we are entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, in the event of a breach of non-competition covenants, All Dogs Unleashed is entitled to seek legal remedies. Specifically, All Dogs Unleashed can pursue claims against franchisees, their guarantors, and owners for breaches related to unauthorized use of trademarks, confidential information, unfair competition, and violations of non-competition agreements.
This means that if a franchisee violates the non-competition agreement, All Dogs Unleashed has the right to seek legal recourse, including monetary damages and potentially injunctive relief to stop the franchisee from continuing the prohibited activities. This is a standard practice in franchising, as franchisors need to protect their brand, trade secrets, and market share. The FDD also states that All Dogs Unleashed is entitled to receive awards for multiple damages, attorney's fees, and all damages as provided by law.
For a prospective franchisee, this underscores the importance of fully understanding and adhering to the non-competition covenants outlined in the franchise agreement. Violating these covenants can lead to significant financial and legal repercussions. It is advisable to consult with an attorney to fully grasp the scope and implications of these restrictions before entering into a franchise agreement with All Dogs Unleashed.