Will All Dogs Unleashed guarantee a franchisee's other obligations?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Item 15, the franchisee's "Owners" must sign a personal guaranty and agree to be personally bound to the franchise agreement.
I understand that, were it not for this Personal Guaranty and Undertaking (the "Guaranty"), Franchisor would not have agreed to enter into the Franchise Agreement with the Franchisee.
I will comply with the provisions contained in Article 7 of the Franchise Agreement concerning the Franchisee's use of Franchisor's Marks and Copyrighted Works (as each term is defined in the Franchise Agreement).
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;
Franchisor is a third-party beneficiary of this Confidentiality Agreement and may enforce it, solely and/or jointly with the Franchisee.
Source: Item 10 — FINANCING (FDD page 20)
What This Means (2025 FDD)
The 2025 All Dogs Unleashed Franchise Disclosure Document does not state that All Dogs Unleashed will guarantee a franchisee's obligations. However, it does state that the franchisee's owners must sign a personal guarantee, agreeing to be personally bound to the franchise agreement.
Specifically, if not for the Personal Guaranty and Undertaking, All Dogs Unleashed would not agree to enter into the Franchise Agreement with the Franchisee. The owners must also comply with provisions in the franchise agreement, such as those concerning the use of All Dogs Unleashed's marks and copyrighted works, maintaining confidentiality of information, and the transfer of ownership interest in the Franchisee.
While an owner of the Franchisee and for a two-year period after ceasing to be an owner, the owner will not divert customers to competitors or harm the goodwill associated with the All Dogs Unleashed brand. Franchisor is a third-party beneficiary of the Confidentiality Agreement and may enforce it, solely and/or jointly with the Franchisee.