What is the impact of Attachment B on the personal guarantee requirements for an All Dogs Unleashed franchisee?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
I own a beneficial interest in the Franchisee and would be considered an "Owner" within the definition contained in the Franchise Agreement.
I understand that, were it not for this Personal Guaranty and Undertaking (the "Guaranty"), Franchisor would not have agreed to enter into the Franchise Agreement with the Franchisee.
I will comply with the provisions contained in Article 7 of the Franchise Agreement concerning the Franchisee's use of Franchisor's Marks and Copyrighted Works (as each term is defined in the Franchise Agreement).
I understand that, except for the license granted to the Franchisee, I have no individual right to use the Marks or Copyrighted Works, and I have no ownership interest in the Marks or Copyrighted Works.
I will comply with all of the provisions contained in Article 8 of the Franchise Agreement concerning the use of the Confidential Information.
I will maintain the confidentiality of all Confidential Information disclosed to me.
I agree to use the Confidential Information only for the purposes authorized under the Franchise Agreement.
I further agree not to disclose any of the Confidential Information, except (a) to the Franchisee's employees on a need-to-know basis, (b) to the Franchisee's and my legal and tax professionals to the extent necessary for me to meet my legal obligations, and (c) as otherwise may be required by law.
I will comply with all of the provisions contained in Article 12 of the Franchise Agreement concerning the transfer of my ownership interest in the Franchisee.
While I am an Owner of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration (without renewal) of the Franchise Agreement, whichever occurs first), I will not:
- (a) Divert or attempt to divert any present or prospective customer of the ALL DOGS UNLEASHED franchised business to any competitor, by direct or indirect inducement or otherwise, provide dog training, grooming, or boarding services to any customer or former customer of the Franchised Business, or do anything to harm the goodwill associated with the Marks and the System;
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed FDD, Attachment B outlines the Personal Guaranty and Undertaking required of owners. As stated in the document, the franchisor, ADU Franchise Limited Liability Company, would not enter into a franchise agreement without this personal guarantee. This means that any individual with a beneficial interest considered an "Owner" must sign the guarantee, making them personally liable for the franchise's obligations.
The personal guarantee extends beyond just financial obligations. It includes compliance with Article 7 of the Franchise Agreement, concerning the use of All Dogs Unleashed's Marks and Copyrighted Works, and Article 8, which covers the use and confidentiality of confidential information. The owner must also comply with Article 12 regarding the transfer of ownership interest in the franchisee. These provisions ensure that the owner is personally responsible for protecting the brand's intellectual property and maintaining confidentiality, even if they delegate day-to-day operations to a manager.
Furthermore, the personal guarantee includes a non-compete clause. While an owner of the All Dogs Unleashed franchise, and for two years after ceasing to be an owner or after termination/expiration of the franchise agreement, the owner cannot divert customers to competitors, provide dog training/grooming/boarding services to customers or former customers, or harm the goodwill associated with the Marks and the System. This restriction also prevents the owner from owning, maintaining, or being involved with any competing dog training, grooming, or boarding business within the service area or within 25 miles of any All Dogs Unleashed business. This non-compete does not apply if the owner has less than a five percent beneficial interest in a publicly held corporation. This ensures that former owners do not leverage their experience to directly compete with the All Dogs Unleashed franchise system.