What happens if the All Dogs Unleashed Franchisor elects to assume the lease?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) In the event of Franchisee's default under the terms of the Lease, Landlord shall promptly deliver notice of such default to Franchisor and shall offer Franchisor the opportunity to cure the default and to assume the Lease in Franchisor's name.
If Franchisor elects to cure the default and assume the Lease,
Franchisor, within 10 days of its receipt of notice from Landlord, shall notify Landlord of its intent to cure such default and to assume the Lease. If Franchisor elects to cure the default, it shall cure the default within 30 days of such election or, if the default cannot be reasonably cured within such 30-day period, then Franchisor will commence and proceed to cure the default within such time as is reasonably necessary to cure the default. If Franchisor elects to assume the Lease, Landlord agrees to recognize Franchisor as the tenant under the Lease and Franchisee will no longer have any rights there under.
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 defaults on their lease, the landlord must notify All Dogs Unleashed and offer them the opportunity to correct the default and assume the lease. To do so, All Dogs Unleashed must notify the landlord of their intent within 10 days of receiving notice.
If All Dogs Unleashed chooses to correct the default, they have 30 days to do so, or if the default cannot be reasonably corrected within 30 days, they must begin and continue to correct the default within a reasonable time.
If All Dogs Unleashed chooses to assume the lease, the landlord must recognize All Dogs Unleashed as the new tenant, and the franchisee will no longer have any rights under the lease. This provides All Dogs Unleashed with a mechanism to maintain control over the location and continue operations, mitigating potential disruptions to the brand and customer base.