If All Dogs Unleashed takes an assignment of the lease, what consideration is paid to the franchisee?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the option to assume your lease for the Commercial Training Facility premises, such option to be exercised at any time before or within 30 days after expiration or termination of this Agreement. If Franchisor exercises this option, you shall assign to Franchisor or its designee your interest in the lease. If Franchisor or its designee assumes your lease, title to all leasehold improvements will convey to the assignee upon such assignment, without any further consideration.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, if All Dogs Unleashed exercises its option to assume a franchisee's lease, the franchisee will assign their interest in the lease to All Dogs Unleashed or its designee. Upon such assignment, title to all leasehold improvements will transfer to the assignee without any further compensation to the franchisee.
This means that the franchisee will not receive any direct monetary payment or other consideration from All Dogs Unleashed for the leasehold improvements when the lease is assigned. The franchisee essentially relinquishes their rights to the lease and any physical improvements made to the property without any additional financial benefit.
This aspect of the franchise agreement is important for prospective franchisees to consider, as it affects their potential return on investment, particularly if they have invested significantly in leasehold improvements. Franchisees should factor this into their financial planning and be aware that they will not be compensated for these improvements if All Dogs Unleashed chooses to assume the lease upon termination or expiration of the franchise agreement.