Does the All Dogs Unleashed non-compete agreement prevent a franchisee from being a 'consultant' for a Competitive Business?

According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the non-compete agreement restricts franchisees from engaging with competitive businesses in several capacities. Specifically, franchisees are prohibited from advising or assisting any business that provides dog training, grooming, or boarding services within their service area or within 25 miles of any All Dogs Unleashed business. This restriction extends to the franchisee's service area as defined in the Franchise Agreement.

This means that during the term of the franchise agreement, an All Dogs Unleashed franchisee cannot act as a consultant for a competing dog training, grooming, or boarding business within the specified geographic limitations. This restriction is designed to protect All Dogs Unleashed's market share and prevent franchisees from using the franchisor's confidential information and training to benefit a competitor. The non-compete aims to preserve the goodwill associated with the All Dogs Unleashed brand and system.

However, the agreement does allow for an exception: a franchisee can own less than a five percent beneficial interest in the outstanding securities of any publicly held corporation, even if that corporation operates a competing business. This exception is fairly standard in franchise agreements, allowing franchisees to invest in the stock market without violating the non-compete clause, provided their ownership stake is minimal. A prospective franchisee should carefully consider these restrictions and how they might impact their other business or investment interests before signing the Franchise Agreement.