What must each owner execute as a condition of renewing an All Dogs Unleashed franchise?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
You may renew the franchise granted by this Agreement for two consecutive five-year terms if, at the end of each leading term, each of the following conditions has been satisfied: (a) you have notified Franchisor of your intent to renew the franchise no less than 180 days and no more than 12 months prior to expiration of the then-current term; (b) you are not in default of any material provision of this Agreement and you have complied with the material terms and conditions of this Agreement throughout the term; (c) you have satisfied all monetary obligations owed to Franchisor, its Affiliates and third party suppliers; (d) you have maintained and renovated the Facility so that it complies with Franchisor's then-current requirements; (e) you have the right to remain in possession of the Facility premises, or you have secured an alternate site with Franchisor's prior approval; (f) you comply with the then-current qualifications and training requirements; (g) you sign Franchisor's then-current form of franchise agreement, the terms of which may be materially different than the terms of this Agreement (which will be modified to eliminate any initial franchise fee payment requirement, and to reflect that all renewal options will be governed by this Agreement), (h) each Owner executes a personal guaranty and undertaking in the form Franchisor prescribes; (i) you and each Owner sign a general and full release in favor of Franchisor and its Affiliates, and their respective, officers, directors, shareholders, members, managers, employees, and agents, of any claims arising out of or related to the franchise relationship including the offer and sale of ALL DOGS UNLEASHED franchise opportunity; and (j) you have paid the renewal fee in the amount stated in the Summary Page.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, a condition of renewing the franchise agreement is that each owner must execute a personal guaranty and undertaking in the form that All Dogs Unleashed prescribes. This requirement is one of ten conditions that must be met to renew the franchise for two additional five-year terms.
In practical terms, this means that each individual owner is personally guaranteeing the franchisee's obligations under the renewed franchise agreement. This is a significant commitment, as the owner's personal assets could be at risk if the All Dogs Unleashed franchise fails to meet its financial or other contractual obligations.
Prospective franchisees should carefully review the form of personal guaranty and undertaking to fully understand the scope of their personal liability. They should also consider seeking legal advice to assess the risks and implications of signing such a document. This requirement is fairly standard in franchising, as it provides the franchisor with additional security and recourse in the event of franchisee default.