If All Dogs Unleashed modifies a covenant, when does the modification become effective?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Confidentiality Agreement, 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.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, All Dogs Unleashed has the right to reduce the scope of any covenant in the Confidentiality Agreement without the franchisee's consent. This modification becomes effective immediately upon the franchisee's receipt of written notice from All Dogs Unleashed. The franchisee must then comply with the covenant as modified.
This clause gives All Dogs Unleashed significant flexibility to adjust the terms of the Confidentiality Agreement during the franchise term. It means a franchisee could suddenly be subject to a narrower or altered covenant, impacting their business operations or future plans. The franchisee's consent is not required for these changes, so they must be prepared to adapt quickly to any modifications All Dogs Unleashed deems necessary.
For a prospective All Dogs Unleashed franchisee, this highlights the importance of carefully reviewing the Confidentiality Agreement and understanding the potential for unilateral changes by the franchisor. It would be prudent to seek legal counsel to fully grasp the implications of this clause and to discuss with All Dogs Unleashed the circumstances under which such modifications might occur. Understanding the franchisor's typical practices in this area can help a franchisee anticipate and prepare for potential changes to the agreement.