What happens if an All Dogs Unleashed franchisee pays less than the amount due?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
If you pay less than the amount due, your payment will be considered a partial payment on account.
Franchisor may accept such payment as a partial payment, irrespective of any endorsement or other statement that the payment constitutes full payment.
Franchisor's acceptance of such partial payment will not be considered a waiver of any of its right to demand or receive
full payment, and you hereby waive any estoppel defense in this regard. Franchisor may apply your payments to any indebtedness, in its sole and reasonable discretion, regardless of any designation that accompanies the payment.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, if a franchisee pays less than the full amount due, the payment is considered a partial payment. All Dogs Unleashed may accept this partial payment without it being considered a waiver of their right to demand and receive the full outstanding balance. The franchisee also waives any estoppel defense in this situation.
All Dogs Unleashed has the discretion to apply the partial payment to any outstanding debt the franchisee owes, regardless of any specific designation the franchisee makes with the payment. This means the franchisor can allocate the payment to older debts or fees as they see fit, which may not align with the franchisee's preference.
This policy is fairly standard in franchising, as it protects the franchisor's right to collect the full amount owed while maintaining some flexibility in how payments are applied. However, it's important for franchisees to understand that making partial payments does not prevent the accrual of interest or other penalties on the remaining balance, and it doesn't limit the franchisor's ability to pursue further collection efforts for the outstanding debt.
Prospective All Dogs Unleashed franchisees should be aware of these payment terms and ensure they have a clear understanding of how payments are applied and what the consequences are for not paying the full amount due. Maintaining open communication with the franchisor regarding any payment issues is advisable to avoid potential disputes or misunderstandings.