Following termination of the All Dogs Unleashed agreement, can a franchisee participate in a Competitive Business within the Development Area?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
rm the goodwill associated with the Marks and the System;
- (b) Employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or
- (c) Own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with, any business that provides dog training, grooming, or boarding services other than a ALL DOGS UNLEASHED franchised business operated pursuant to a then-currently effective franchise agreement. This restriction shall apply, while I am an Owner, to any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Franchisor or its Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks. It will apply for two years after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first) to any location that is, or is intended to be, located (i) in the Service Area, or within 25 miles of the perimeter of the Service Area; or (ii) within the service area, or within 25 miles of the perimeter of the service area, of any other ALL DOGS UNLEASHED business in existence or under development at the time I cease being an Owner (or termination or expiration of the Franchise Agreement, whichever occurs first). This restriction will be tolled during any period of my noncompliance.
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- I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision 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, a franchisee is restricted from engaging in competitive business activities after the termination or expiration of their franchise agreement. Specifically, for two years after ceasing to be an owner or after the termination/expiration of the Franchise Agreement (whichever comes first), the franchisee is restricted from involvement in any business providing dog training, grooming, or boarding services. This restriction applies to any location that is, or is intended to be, located in the Service Area or within 25 miles of the perimeter of the Service Area. It also applies within the service area, or within 25 miles of the perimeter of the service area, of any other All Dogs Unleashed business in existence or under development at the time the franchisee ceases being an Owner or the termination/expiration of the Franchise Agreement.
This non-compete clause prevents former All Dogs Unleashed franchisees from leveraging the knowledge and experience gained during their franchise tenure to directly compete with the All Dogs Unleashed system. The geographic scope of the restriction—the franchisee's service area plus a 25-mile radius—aims to protect existing All Dogs Unleashed businesses from immediate competition by a former franchisee who could potentially divert customers or harm the goodwill associated with the All Dogs Unleashed brand. The clause is tolled during any period of noncompliance.
This type of restriction is common in franchising to protect the brand and other franchisees. Prospective All Dogs Unleashed franchisees should carefully consider the implications of this post-termination non-compete clause, especially if they plan to remain in the dog training, grooming, or boarding industry after leaving the All Dogs Unleashed system. They should evaluate whether the geographic and time limitations are acceptable and how these restrictions might affect their future business opportunities.
It is important to note that the agreement also includes a provision that if any portion of the covenant is held unreasonable or unenforceable by a court, the franchisee agrees to be bound by any lesser covenant that imposes the maximum duty permitted by law. This ensures that some level of restriction remains in place, even if the original terms are deemed too broad. Additionally, All Dogs Unleashed retains the right to reduce the scope of any covenant without the franchisee's consent, providing flexibility for the franchisor to adjust the restrictions as needed.