Is All Dogs Unleashed obligated to operate the Franchised Business in the event of a franchisee default?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) In the event of Franchisee's default under the terms of the Lease, Landlord shall promptly deliver notice of such default to Franchisor and shall offer Franchisor the opportunity to cure the default and to assume the Lease in Franchisor's name.
If Franchisor elects to cure the default and assume the Lease,
Franchisor, within 10 days of its receipt of notice from Landlord, shall notify Landlord of its intent to cure such default and to assume the Lease. If Franchisor elects to cure the default, it shall cure the default within 30 days of such election or, if the default cannot be reasonably cured within such 30-day period, then Franchisor will commence and proceed to cure the default within such time as is reasonably necessary to cure the default. If Franchisor elects to assume the Lease, Landlord agrees to recognize Franchisor as the tenant under the Lease and Franchisee will no longer have any rights there under.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, All Dogs Unleashed is not obligated to operate the franchised business in the event of a franchisee default. However, the FDD states that in the event of a franchisee's default under the terms of the lease, the landlord must promptly deliver notice of such default to All Dogs Unleashed and offer All Dogs Unleashed the opportunity to cure the default and assume the lease in All Dogs Unleashed's name.
If All Dogs Unleashed elects to cure the default and assume the lease, All Dogs Unleashed must notify the landlord within 10 days of receiving notice from the landlord of its intent to cure such default and assume the lease. All Dogs Unleashed has 30 days to cure the default, or if the default cannot be reasonably cured within 30 days, All Dogs Unleashed will commence and proceed to cure the default within such time as is reasonably necessary to cure the default. If All Dogs Unleashed elects to assume the lease, the landlord agrees to recognize All Dogs Unleashed as the tenant under the lease, and the franchisee will no longer have any rights there under.
This clause protects All Dogs Unleashed's interests in maintaining the location and continuing operations, but it does not mandate that All Dogs Unleashed take over the business. It is fairly common in franchising for the franchisor to have the option, but not the obligation, to step in and take over a failing franchise location. This allows All Dogs Unleashed to protect its brand and system without being forced to assume responsibility for poorly managed locations.