Is the All Dogs Unleashed franchise agreement binding on successors and assigns?

According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the franchise agreement is indeed binding on both the franchisor's and the franchisee's successors and assigns. This means that if ADU Franchise Limited Liability Company, the franchisor, is acquired or merges with another entity, the new entity must honor the existing franchise agreements. Similarly, if a franchisee sells their business or passes it on to heirs, the agreement remains in effect for the new owner, subject to any restrictions on assignment outlined in the agreement.

This clause provides a level of assurance for both parties. For All Dogs Unleashed, it ensures continuity of the franchise system even if ownership changes hands. For the franchisee, it means that the rights and obligations under the franchise agreement can be transferred (subject to franchisor approval), adding value to the business. This is a fairly standard provision in franchise agreements, as it protects the interests of both the franchisor and franchisee in the event of a transfer of ownership.

However, the clause also notes that the binding nature of the agreement on successors and assigns is "subject to the prohibitions against assignment in this Agreement." This is a critical caveat. Franchise agreements typically contain restrictions on when and how a franchisee can transfer their rights. These restrictions often include requirements for franchisor approval, training of the new owner, and payment of a transfer fee. Therefore, while the agreement is generally binding on successors, a franchisee cannot simply transfer the agreement to anyone without meeting the franchisor's conditions.