What happens if any part of the All Dogs Unleashed non-compete agreement is deemed unlawful?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
n of the Franchise Agreement, whichever occurs first). This restriction will be tolled during any period of my noncompliance.
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- I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Guaranty. If all or any portion of a covenant in this Guaranty is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an un-appealed final decision to which Franchisor is a party, I expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Guaranty.
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- I understand and acknowledge that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Guaranty, or any portion thereof, without my consent, effective immediately upon my receipt of written notice thereof, and I agree to comply forthwith with any covenant as so modified.
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- I hereby guarantee the prompt and full payment of all amounts owed by the Franchisee under the Franchise Agreement. I will pay all amounts due under this Guaranty within 14 days after receiving notice from Franchisor that the Franchisee has failed to make the required payment.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, if any part of the non-compete agreement within the Guaranty or Confidentiality Agreement is deemed unreasonable or unenforceable by a court or agency with valid jurisdiction, the franchisee expressly agrees to be bound by a lesser covenant. This lesser covenant would impose the maximum duty permitted by law, as if it were originally written that way in the agreement.
In simpler terms, if a specific part of the non-compete clause is found to be too restrictive, the franchisee agrees to abide by a modified version that is legally permissible. This ensures that some form of non-compete obligation remains in effect, protecting All Dogs Unleashed's interests to the fullest extent allowed by law. This adjustment happens automatically without needing a new agreement.
This clause is included in both the Guaranty and Confidentiality Agreement, meaning it applies to both the franchisee's promise to guarantee obligations and their commitment to keep sensitive information confidential. All Dogs Unleashed also has the right to reduce the scope of any covenant in the Confidentiality Agreement, effective immediately upon written notice to the franchisee. This allows All Dogs Unleashed to adjust the restrictions as needed without requiring the franchisee's consent.