Does the All Dogs Unleashed non-compete agreement prevent actions that are 'injurious' to the goodwill of the brand?

According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the non-compete agreement does address actions that could harm the brand's goodwill. Specifically, while an owner of the All Dogs Unleashed franchise and for a two-year period after ceasing to be an owner, the agreement prohibits diverting or attempting to divert customers to competitors, providing dog training, grooming, or boarding services to customers or former customers of the franchised business, or doing anything to harm the goodwill associated with the Marks and the System. This clause is designed to protect the All Dogs Unleashed brand and its reputation within the market.

This provision means that franchisees and their owners are legally bound to avoid any actions that could negatively impact the All Dogs Unleashed brand. This includes actively soliciting All Dogs Unleashed customers for a competing business or engaging in activities that could damage the brand's image. The non-compete extends for two years after the franchisee ceases to be an owner or after termination/expiration of the franchise agreement, ensuring a continued obligation to protect the brand's interests even after disaffiliation.

For a prospective All Dogs Unleashed franchisee, this non-compete clause is a significant consideration. It restricts their ability to engage in competitive activities within a defined period and requires them to actively protect the brand's goodwill. Failing to comply with these terms could result in legal action from All Dogs Unleashed, as the franchisor has the right to enforce these covenants. The franchisee should carefully evaluate the implications of this restriction on their future business endeavors and ensure they fully understand their obligations under the agreement.