Under what circumstances does All Dogs Unleashed have the option to purchase a franchisee's business?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | 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.)
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, All Dogs Unleashed has the option to purchase a franchisee's business under specific circumstances related to the termination or expiration of the franchise agreement. Specifically, upon the expiration or termination of the franchise agreement, All Dogs Unleashed has the option to purchase the franchisee's equipment, furnishings, and fixtures.
The price All Dogs Unleashed would pay for these items is defined as the lesser of the franchisee's original cost or the current fair market value of the items. This means a franchisee might not recoup their initial investment in these assets if All Dogs Unleashed exercises its option to purchase them.
Additionally, upon termination or nonrenewal, All Dogs Unleashed has the option to assume the franchisee's telephone numbers, listings, and directory advertisements. All Dogs Unleashed also has the option to assume the franchisee's lease and purchase the business assets. The franchisee must also cancel or assign to All Dogs Unleashed any internet websites, web pages, or email addresses containing All Dogs Unleashed's marks, at All Dogs Unleashed's option.