Can the Franchisor enforce the All Dogs Unleashed Confidentiality Agreement?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor is a third-party beneficiary of this Confidentiality Agreement and may enforce it, solely and/or jointly with the Franchisee.
I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Confidentiality Agreement.
If all or any portion of a covenant in this Confidentiality Agreement is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which Franchisor is a party, I expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Confidentiality Agreement.
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.
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 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the franchisor can enforce the confidentiality agreement. The agreement specifies that the franchisor is a third-party beneficiary and can enforce it solely or jointly with the franchisee.
The confidentiality agreement includes covenants that the franchisee agrees to, and each covenant is construed as independent of any other provision. If a court finds any part of a covenant unreasonable or unenforceable, the franchisee agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law.
All Dogs Unleashed also has the right to reduce the scope of any covenant in the confidentiality agreement without the franchisee's consent, effective immediately upon written notice. This gives All Dogs Unleashed considerable flexibility in enforcing the agreement.
Owners of the Franchisee also have obligations regarding confidentiality. While an owner and for two years after ceasing to be an owner, they cannot divert or attempt to divert customers to a competitor or harm the goodwill associated with the All Dogs Unleashed brand.