Does the non-compete agreement for All Dogs Unleashed prevent using trade secrets after termination?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
or our affiliates. |
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| h. | "Cause" defined – non-curable defaults | Sections 13.1 and 13.2 | The Franchise Agreement will terminate automatically in the event of your insolvency or bankruptcy. |
| We can terminate the franchise agreement without | |||
| providing you an opportunity to cure if your | |||
| Operating | |||
| Principal, | |||
| General | |||
| Manager, | |||
| or | |||
| Assistant Manager | |||
| fails to successfully complete | |||
| our initial training program, if you fail to | |||
| commence operations within the required time | |||
| period, you abandon the Franchised Business, you | |||
| lose your license to operate the Franchised | |||
| Business | |||
| or occupy the premises, you or any of | |||
| your Owners | |||
| commit certain types of crimes, you | |||
| or your owners violate any transfer restrictions, | |||
| you | |||
| or | |||
| any | |||
| Owner | |||
| fails | |||
| to | |||
| comply | |||
| with | |||
| confidentiality or non-compete obligations, you or | |||
| any Owner has made any misrepresentation on | |||
| your franchise application, if an imminent threat | |||
| or danger to public health or safety, or the health | |||
| or safety of any animal, | |||
| results from the operation | |||
| of the Franchised Business, if you misstate your | |||
| Gross | |||
| Sales | |||
| or knowingly maintain false books or | |||
| accounting records, you misuse the Marks or | |||
| Copyrighted | |||
| Works | |||
| or | |||
| offer | |||
| unauthorized | |||
| products or services, you purchase products or | |||
| services from unapproved sources, you fail to pass | |||
| two or more quality assurance inspection in any | |||
| rolling 12-month period, or we deliver to you two | |||
| default notices within any 12-month period. | |||
| i. | Franchisee's obligations on termination/ nonrenewal | Article 14 | You must cease use of our trademarks, de-identify, pay all amounts due to us, and return the Manuals to us. We may, at our option, assume all telephone numbers, telephone listings, and telephone directory advertisements. We may, at our option, assume your lease and purchase the business assets. You must, at our option, cancel or assign to us your rights to any Internet websites or web pages or e-mail addresses which contain our Marks. (See also "r" below.) |
| j. | Assignment of | Section 12.1 | There are no restrictions on our right to assign. |
| contract by franchisor | |||
| k. | "Transfer" by franchisee – definition | Sections 12.2, 12.3, and 12.4 | Includes transfer of the franchise or change in ownership of the franchise entity. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 30–38)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the franchise agreement includes stipulations regarding confidentiality after termination. Specifically, if a franchisee or any of their owners fails to comply with confidentiality obligations, All Dogs Unleashed can terminate the franchise agreement without providing an opportunity to cure the default.
Additionally, the dispute resolution section indicates that actions All Dogs Unleashed brings related to or based on their confidential information are exempt from mediation requirements. This suggests the franchisor places a high value on protecting its confidential information and trade secrets.
Item 17 outlines the franchisee's obligations upon termination or nonrenewal, stating that the franchisee must cease the use of All Dogs Unleashed's trademarks and return the manuals to them. While this clause doesn't explicitly mention trade secrets, the broader context of confidentiality obligations and the protection of confidential information implies that franchisees are prohibited from using trade secrets after the termination of the franchise agreement. Prospective franchisees should carefully review the definition and scope of "Confidential Information" in the franchise agreement to fully understand these post-termination obligations.