Does the non-compete agreement for All Dogs Unleashed apply if the franchise is transferred?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the non-compete agreement applies to the owner of the franchise and specifies the terms of the agreement. Specifically, while an individual is an owner of an All Dogs Unleashed franchise, and for two years after they cease to be an owner, they are restricted from engaging in competitive business activities. These restrictions include diverting customers, providing dog training services, or having any interest in businesses that offer dog training, grooming, or boarding services.
The restrictions apply within the service area or within 25 miles of the perimeter of the service area of any All Dogs Unleashed business. This non-compete agreement is applicable regardless of whether the cessation of ownership is due to a transfer, termination, or expiration of the franchise agreement. The agreement is construed as independent of any other covenant or provision, and the franchisor has the right to reduce the scope of any covenant without consent, effective immediately upon written notice.
For a prospective All Dogs Unleashed franchisee, this means that upon transferring their franchise, they will still be subject to the non-compete agreement for a period of two years. This could limit their ability to engage in similar business ventures within a specified radius of any All Dogs Unleashed location. The franchisee should carefully consider these restrictions and how they might impact their future business opportunities before deciding to transfer their franchise.