Under what conditions will an All Dogs Unleashed advertising cooperative be terminated?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the sole right to form, change, dissolve, and merge Cooperatives and to create and amend any organizational and governing documents of any Cooperative. As no Cooperatives have yet been established for the franchise system, governing documents are not available for your review. Once established, we may terminate and/or dissolve the Cooperative at any time. The Cooperative will not be terminated, however, until all monies in the Cooperative have been expended for authorized purposes or returned to contributing Facilities (whether franchised or company or affiliate-owned), without interest, on the basis determined by a majority vote of its members. Each Cooperative must prepare annual, unaudited financial statements, which will be made available to its contributing members.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–26)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, All Dogs Unleashed retains the sole right to terminate or dissolve any advertising cooperative at any time. However, the cooperative will not be terminated until all funds within it have been fully spent for authorized purposes. Alternatively, the funds can be returned to the contributing facilities, whether they are franchised, company-owned, or affiliate-owned. These returns would be made without interest and based on a distribution method determined by a majority vote of the cooperative's members.
This means that while All Dogs Unleashed has the authority to end an advertising cooperative, there are stipulations in place to ensure that the money contributed is properly used or returned to the franchisees. This provides some level of financial protection for franchisees who are contributing to the cooperative.
It is important to note that the FDD also states that each cooperative must prepare annual, unaudited financial statements, which will be made available to its contributing members. This transparency allows franchisees to monitor the cooperative's financial activities and ensure that funds are being used appropriately before any potential termination.