Does the All Dogs Unleashed Franchise Agreement define 'cause' for termination?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
sclosure document. |
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Not applicable | No provision, however, you may terminate under any grounds permitted by law. |
| e. | Termination by franchisor without cause | Not applicable | No provision. |
| f. | Termination by franchisor with cause | Sections 13.1, 13.2, 13.3, 13.4, 13.5, and 13.6 | We can only terminate if you are in default. |
| g. | "Cause" defined – curable defaults | Sections 13.3, 13.4, 13.5, and 13.6 | We can terminate the franchise agreement after providing you a 10-day cure period if you fail to maintain minimum insurance coverage, fail to pay any amounts due to us, fail to pay amounts due to your trade creditors (except if there is a bona fide dispute), fail to pay any amounts for which we have advanced funds or that we have guaranteed for your benefit, or fail to comply with requirements set forth in the Manual. We can terminate the franchise agreement upon delivery of notice and after a 30-day cure period for any other violation of the franchise agreement. We can terminate the franchise agreement on account of your failure to timely cure any default under any agreement between you and us or our affiliates. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 30–38)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the Franchise Agreement outlines specific conditions under which All Dogs Unleashed can terminate the agreement with cause. The document differentiates between curable and non-curable defaults, each with its own set of conditions and procedures.
For curable defaults, All Dogs Unleashed may terminate the agreement if the franchisee fails to maintain minimum insurance coverage, fails to pay amounts due to All Dogs Unleashed or their trade creditors (unless there's a legitimate dispute), fails to pay amounts for which All Dogs Unleashed has advanced funds or provided guarantees, or fails to comply with the requirements outlined in the operations manual. In these instances, All Dogs Unleashed must provide a 10-day cure period for the franchisee to rectify the issue. For any other violation of the franchise agreement, All Dogs Unleashed must provide a 30-day cure period after delivering notice.
Non-curable defaults, on the other hand, allow All Dogs Unleashed to terminate the agreement immediately upon notification. These defaults include insolvency or bankruptcy of the franchisee. This distinction between curable and non-curable defaults is common in franchise agreements, as it allows the franchisor to address minor issues while also protecting their interests in cases of severe or irreparable breaches.
Prospective All Dogs Unleashed franchisees should carefully review Sections 13.1, 13.2, 13.3, 13.4, 13.5, and 13.6 of the Franchise Agreement to fully understand their obligations and the circumstances that could lead to termination. Understanding these provisions is crucial for maintaining a successful and compliant franchise operation.