Does the All Dogs Unleashed non-compete agreement restrict involvement in competitive businesses 'indirectly'?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
r 23, 2001, | | | pertaining to persons who commit, threaten to commit, or support terrorism (“Blocked Persons”). You | | | represent and warrant to Franchisor that you will not accept money from or employ any Blocked Person. | | person, partnership, corporation, or other limited liability company:
thereafter, either directly or indirectly, for myself or through, on behalf of, or in conjunction with any other
UNLEASHED Franchised Business to any competitor, by direct or indirect inducement or otherwise,
(a) Divert or attempt to divert any present or prospective customer of the ALL DOGS
provide dog training, boarding, or grooming 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, or
- (b) Own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in any business providing dog training, grooming, or boarding services within the Service Area, or within 25 miles of the perimeter of the Service Area, of any ALL DOGS UNLEASHED business, or the Franchisee's Service Area or within 25 miles of the perimeter of the Franchisee's Service Area, as that term is defined in the Franchise Agreement. This restriction does not apply to my ownership of less than five percent beneficial interest in the outstanding securities of any publicly held corporation.
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- I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Confidentiality Agreement. If all or any portion of a covenant in this Confidentiality Agreement is held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which Franchisor is a party, I expressly agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Confidentiality Agreement.
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- I understand and acknowledge that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Confidentiality Agreement, or any portion thereof, without my consent, effective immediately upon my receipt of written notice thereof, and I agree to comply forthwith with any covenant as so modified.
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- Franchisor is a third-party beneficiary of this Confidentiality Agreement and may enforce it, solely and/or jointly with the Franchisee.
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 restrict involvement in competitive businesses both directly and indirectly. The agreement specifies that franchisees cannot divert or attempt to divert customers from the All Dogs Unleashed franchised business to any competitor through direct or indirect inducement.
Specifically, the agreement prohibits franchisees from owning, maintaining, engaging in, being employed by, advising, assisting, investing in, franchising, making loans to, or having any interest in any business providing dog training, grooming, or boarding services within the Service Area, or within 25 miles of the perimeter of the Service Area of any All Dogs Unleashed business. However, this restriction does not apply to ownership of less than five percent beneficial interest in the outstanding securities of any publicly held corporation.
Furthermore, after the termination or expiration of the franchise agreement, the franchisee and their owners, officers, and agents are prohibited from directly or indirectly participating in any Competitive Business within the Development Area, within a 25-mile radius of the Development Area, or within a 25-mile radius of any All Dogs Unleashed Facility in operation, under lease, or under construction. This restriction extends for two years after the agreement's termination or expiration. These covenants are designed to protect All Dogs Unleashed's market position and confidential information.