What is the franchisee's obligation regarding compliance with modified covenants in the Confidentiality Agreement for All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
I understand and acknowledge that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Confidentiality Agreement, or any portion thereof, without my consent, effective immediately upon my receipt of written notice thereof, and I agree to comply forthwith with any covenant as so modified.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the franchisee must comply with any modifications to the covenants within the Confidentiality Agreement. All Dogs Unleashed has the right to reduce the scope of any covenant in the Confidentiality Agreement, or any portion thereof, without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee is then obligated to comply with the covenant as it has been modified.
This means that All Dogs Unleashed can change the terms of the Confidentiality Agreement, potentially impacting the franchisee's obligations regarding confidential information, non-compete clauses, or other restrictions. The franchisee's consent is not required for these changes, giving All Dogs Unleashed significant control over the terms of the agreement during the franchise term.
For a prospective All Dogs Unleashed franchisee, this highlights the importance of carefully reviewing the Confidentiality Agreement and understanding the potential scope of its covenants. It also underscores the need to maintain open communication with All Dogs Unleashed to stay informed of any modifications to these covenants and to understand how those changes might affect their business operations and future opportunities. The franchisee should seek legal counsel to fully understand the implications of these clauses.