If a non-compete provision in the All Dogs Unleashed agreement is deemed unlawful, what happens?
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.
-
- 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.
-
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, if a court or agency with jurisdiction determines that any part of a non-compete covenant is unreasonable or unenforceable, 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.
This means that if a specific part of the non-compete agreement, such as the geographic radius or the duration, is found to be too restrictive, the franchisee is still obligated to adhere to a modified, more limited version of the non-compete that is legally permissible. The aim is to ensure that some form of non-compete obligation remains in effect, protecting All Dogs Unleashed's interests to the fullest extent allowed by law.
Furthermore, All Dogs Unleashed has the right to reduce the scope of any covenant, including the non-compete, without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the covenant as modified. This provides All Dogs Unleashed with flexibility to adjust the non-compete terms to ensure enforceability or to address specific situations.