What is the geographic scope of the non-compete agreement for All Dogs Unleashed after the agreement expires or terminates?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1.2 During the 2 years after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any Competitive Business that is located: (a) anywhere in the Development Area; (b) within a 25 mile radius of the Development Area; or (c) within a 25 mile radius of any Facility in operation, under lease, or under construction as of the date of termination or expiration, as applicable. During the 2 years after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any franchise system that is offering or selling the right to develop, open or operate Competitive Businesses anywhere in the United States. The covenants not to compete are in addition to and not in lieu of your obligations under this Agreement to not use any trade secrets, confidential information or personal contacts except as we authorize.
- 7.1.3 You agree that the restricted periods stated in Section 7.1 (inclusive of all subparts) are tolled during any time in which you are in violation of your obligations. We may require you to obtain written agreements from your owners, officers, directors, employees and agents to not compete against us and to not disclose our trade secrets and confidential information. These agreements will be in a form we approve.
- 7.1.4 If for any reason, any provision of the covenants not to compete stated in Section 7.1 (inclusive of all subparts) is determined to exceed any lawful scope and limit as to duration, geographic coverage, or otherwise, you agree that provision will nevertheless be binding to the full scope or limit allowed by applicable laws or by a court of law.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, after the franchise agreement expires or terminates, the franchisee is restricted from involvement with any Competitive Business. This non-compete restriction lasts for two years. A Competitive Business includes businesses providing dog training, grooming, daycare, or boarding services, or businesses that offer similar products and services authorized by All Dogs Unleashed.
The geographic scope of this restriction includes the Development Area, or within a 25-mile radius of the Development Area. It also extends to within a 25-mile radius of any All Dogs Unleashed facility that is in operation, under lease, or under construction as of the date of termination or expiration of the franchise agreement.
Furthermore, during those 2 years, the franchisee cannot participate in any franchise system that offers or sells the right to develop, open, or operate Competitive Businesses anywhere in the United States. This non-compete agreement is in addition to the franchisee's obligation to protect All Dogs Unleashed's trade secrets and confidential information. If any part of the non-compete agreement is deemed unenforceable, the franchisee agrees to be bound to the maximum extent allowed by law.