Does the All Dogs Unleashed franchisor have the right to reduce the scope of the non-compete covenants?
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 FDD, the franchisor has the right to reduce the scope of any covenant set forth in the Confidentiality Agreement, including non-compete covenants. This reduction can be made at the franchisor's sole discretion without the franchisee's consent. The change becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the modified covenant.
This provision gives All Dogs Unleashed significant flexibility to adjust the non-compete terms. For a potential franchisee, this means the non-compete agreement they initially sign could become less restrictive during the term of the agreement. This could be beneficial if the franchisee later wants to pursue other opportunities that might have initially been restricted.
However, it's important to note that while the franchisor can reduce the scope, the FDD does not state that they can expand it. Franchisees should carefully consider this clause and understand that the franchisor has the power to unilaterally alter the non-compete terms, potentially allowing more competition in their area or reducing their own restrictions should they leave the All Dogs Unleashed system.