What is the geographic scope of the non-competition covenant for an All Dogs Unleashed franchisee after termination or expiration?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Section 15.2 | For a two-year period following expiration, termination or transfer of the franchise, neither you nor your owners may (i) perform dog training, grooming, or boarding services for any customer or former customer of the Franchised Business or (ii) own, maintain, advise, operate, engage in, be employed by, make loans to, or have any interest in any business providing dog training, grooming, or boarding services within or within 25 miles from the perimeter of your former Service Area, or within or within 25 miles of the perimeter of any other ALL DOGS UNLEASHED business no diversion of any present or prospective customer of ours to a competitor; no solicitation of ours or any of our affiliate's management employees. |
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, after the franchise agreement is terminated or expires, the franchisee is subject to a non-competition covenant. This means that for a period of two years, the franchisee and their owners are restricted from engaging in certain business activities related to dog training, grooming, or boarding services.
The geographic scope of this restriction includes two specific areas. First, the franchisee cannot perform dog training, grooming, or boarding services for any customer or former customer of the All Dogs Unleashed franchised business. Second, the franchisee is prohibited from owning, maintaining, advising, operating, or being involved in any business that provides dog training, grooming, or boarding services within the franchisee's former service area, or within 25 miles of the perimeter of that service area. The restriction also extends to within 25 miles of any other All Dogs Unleashed business.
This non-competition covenant also prevents the franchisee from diverting any present or prospective customer of All Dogs Unleashed to a competitor and from soliciting any of All Dogs Unleashed's or its affiliates' management employees. This ensures that franchisees do not leverage their knowledge and relationships gained during the franchise term to unfairly compete with All Dogs Unleashed after the agreement ends. Franchisees should carefully consider these restrictions, as they could significantly limit their business opportunities in the dog training, grooming, and boarding services industry after leaving the All Dogs Unleashed system.