Under what circumstances can All Dogs Unleashed take an assignment of the franchisee's interest in the lease?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 14.2. Assignment of Lease; De-Identification. Franchisor shall have the option to assume your lease for the Commercial Training Facility premises, such option to be exercised at any time before or within 30 days after expiration or termination of this Agreement. If Franchisor exercises this option, you shall assign to Franchisor or its designee your interest in the lease. If Franchisor or its designee assumes your lease, title to all leasehold improvements will convey to the assignee upon such assignment, without any further consideration. If Franchisor does not exercise its option, you shall modify the Facility premises as may be necessary to distinguish the appearance of the Facility from that of other ALL DOGS UNLEASHED Facilities and shall make such specific additional changes to the Franchised Location as Franchisor may reasonably request for that purpose. Such de-identification must be completed within 60 days after expiration or termination of this Agreement.
- 14.3. Return of Manuals, Workbooks, and Other Materials Reflecting Customer Information and Containing Confidential Information.
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 has the option to assume the franchisee's lease for the Commercial Training Facility premises under two primary circumstances. First, All Dogs Unleashed can exercise this option at any time before or within 30 days after the expiration or termination of the Franchise Agreement. If All Dogs Unleashed chooses to exercise this option, the franchisee is obligated to assign their interest in the lease to All Dogs Unleashed or its designee. Upon such assignment, title to all leasehold improvements will automatically transfer to the assignee without any additional compensation to the franchisee.
Second, in the event of the franchisee's default under the terms of the lease, the landlord is required to promptly notify All Dogs Unleashed of the default 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, it must notify the landlord of its intent within 10 days of receiving notice from the landlord. All Dogs Unleashed must then cure the default within 30 days of its election, or if the default cannot be reasonably cured within that period, commence and proceed to cure the default within a reasonable timeframe. If All Dogs Unleashed assumes the lease under these conditions, the landlord agrees to recognize All Dogs Unleashed as the tenant, and the franchisee will no longer have any rights under the lease.
These provisions are typical in franchise agreements to protect the brand and ensure continuity of operations. By having the option to assume the lease, All Dogs Unleashed can maintain control over the location of the franchise, which is crucial for brand consistency and customer recognition. For a prospective franchisee, this means that upon termination or expiration of the franchise agreement, or in the event of a default, they may lose control of their business location if All Dogs Unleashed decides to step in and take over the lease. Franchisees should carefully consider these terms and conditions before entering into a franchise agreement with All Dogs Unleashed.