Does All Dogs Unleashed have a right of first refusal in the event of death or disability of the franchisee?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| m. | Conditions for franchisor's approval of transfer | Section 12.4 | You must be in compliance with the franchise agreement and all other agreements with us or our affiliates. You must also sign a general release, and all of your monetary obligations to us must be satisfied on or before the date of transfer. The new franchise owner must: meet our current qualifications; complete training; sign our then current form of franchise agreement for the remaining term; and refurbish the Facility; sign a guaranty and a general release; pay transfer fee. Additional requirements apply to business entities. (See also "r" below.) |
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 12.8 | We can match any offer to purchase your business or an ownership interest in the franchisee entity. |
| o. | Franchisor's option to purchase franchisee's business | Section 14.4 | Upon expiration or termination of your franchise agreement, we have the option to purchase your equipment, furnishings and fixtures at the lesser of your cost and their then-current fair market value. |
| p. | Death or disability of franchisee | Section 12.9 | Same requirements as for transfer in "m" above, except there is no transfer fee and we do not have a right of first refusal. If your interest is not transferred within six months following your (or a major member, partner or shareholder's) death or legal incapacity, your franchise agreement may be terminated. |
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, in the event of the death or disability of a franchisee, All Dogs Unleashed does not have a right of first refusal to acquire the franchise. Instead, the franchise can be transferred, subject to certain requirements.
Specifically, the requirements for transfer in the event of death or disability are the same as for a standard transfer, except that there is no transfer fee. However, if the franchise interest is not transferred within six months following the death or legal incapacity of the franchisee (or a major member, partner, or shareholder), All Dogs Unleashed has the right to terminate the franchise agreement.
This means that the franchisee's estate or legal representative has a limited time frame to find a qualified buyer and complete the transfer. If a transfer is not completed within six months, All Dogs Unleashed can terminate the agreement, potentially resulting in a loss of the franchise investment. This differs from a standard transfer where All Dogs Unleashed has a right of first refusal to match any offer.