What form is the Guaranty and Personal Undertaking in for All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 1: THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES]
ITEM 1 THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES
To simplify the language in this disclosure document, the term "we" means ADU Franchise limited liability company, the franchisor. The term "you" means the person buying the franchise, the franchisee. If the franchise is a corporation, partnership, limited liability company, or other business entity, the term "you" does not include the entity's Owners unless otherwise stated.
The term "Owners" refers to anyone with a beneficial ownership in the franchisee, including general and limited partners of a partnership, shareholders of a corporation, and members of a limited liability company. As described in Item 15, the franchisee's "Owners" must sign a personal guaranty and agree to be personally bound to the franchise agreement.
[Item 23: RECEIPTS]
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, if the franchisee is a corporation, partnership, limited liability company, or other business entity, the term "you" does not include the entity's Owners unless otherwise stated. The FDD specifies that the franchisee's "Owners" must sign a personal guaranty and agree to be personally bound to the franchise agreement, as described in Item 15.
The Personal Guaranty and Undertaking ensures that the franchisor, ADU Franchise limited liability company, would not have agreed to enter into the Franchise Agreement with the Franchisee without this guarantee. The owner is considered an "Owner" within the definition contained in the Franchise Agreement and owns a beneficial interest in the Franchisee.
The personal guaranty requires the owner to comply with provisions in the franchise agreement, including the use of the franchisor's marks and copyrighted works, the use of confidential information, and the transfer of ownership interest in the franchisee. Additionally, while the owner has an ownership interest and for two years after they cease to be an owner, they will not divert customers to competitors or engage in businesses that provide similar services within the service area of any All Dogs Unleashed business.