Does the All Dogs Unleashed non-compete agreement prevent involvement in competitive franchise systems after termination?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1.2 During the 2 years after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any Competitive Business that is located: (a) anywhere in the Development Area; (b) within a 25 mile radius of the Development Area; or (c) within a 25 mile radius of any Facility in operation, under lease, or under construction as of the date of termination or expiration, as applicable. During the 2 years after expiration or termination of this Agreement, you and your owners, officers and agents will not directly or indirectly participate as an owner, director, partner, officer, franchisee, employee, consultant, advisor, salesperson, distributor, or agent or serve in any other capacity in any franchise system that is offering or selling the right to develop, open or operate Competitive Businesses anywhere in the United States. The covenants not to compete are in addition to and not in lieu of your obligations under this Agreement to not use any trade secrets, confidential information or personal contacts except as we authorize.
- 7.1.3 You agree that the restricted periods stated in Section 7.1 (inclusive of all subparts) are tolled during any time in which you are in violation of your obligations. We may require you to obtain written agreements from your owners, officers, directors, employees and agents to not compete against us and to not disclose our trade secrets and confidential information. These agreements will be in a form we approve.
- 7.1.4 If for any reason, any provision of the covenants not to compete stated in Section 7.1 (inclusive of all subparts) is determined to exceed any lawful scope and limit as to duration, geographic coverage, or otherwise, you agree that provision will nevertheless be binding to the full scope or limit allowed by applicable laws or by a court of law.
- 7.1.5 You agree that damages alone cannot adequately compensate us if there is a violation of any of these non-competition covenants and that injunctive relief is essential for our protection. You therefore agree that on any alleged breach or violation of this Section, we may seek injunctive relief without posting any bond or security, in addition to all other remedies that may be available to us at equity or law.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the non-compete agreement does address involvement in competitive franchise systems after termination or expiration of the franchise agreement. Specifically, for a period of two years after the agreement ends, franchisees and their owners, officers, and agents are restricted from participating in any capacity (owner, director, partner, officer, franchisee, employee, etc.) in a franchise system that offers or sells the right to develop, open, or operate competitive businesses anywhere in the United States. This extends beyond just owning or operating a competing business; it includes being involved as a consultant, advisor, or even a salesperson for a competing franchise.
This restriction is in addition to the franchisee's obligations not to use any trade secrets, confidential information, or personal contacts that belong to All Dogs Unleashed. The agreement also states that these restricted periods can be extended if the franchisee violates the terms of the non-compete agreement. All Dogs Unleashed may also require written agreements from the franchisee's owners, officers, directors, employees, and agents to ensure they also do not compete against the company or disclose trade secrets.
All Dogs Unleashed emphasizes the importance of these non-competition covenants, stating that damages alone may not adequately compensate the company if there is a violation. Therefore, All Dogs Unleashed reserves the right to seek injunctive relief (a court order to stop the prohibited behavior) without needing to post a bond or security. This is in addition to any other legal remedies available to them. The agreement also clarifies that if any part of the non-compete agreement is deemed too broad or unenforceable, the provision should be interpreted to the fullest extent allowed by law.