Is withholding payment of the Royalty Fee a breach of the All Dogs Unleashed Franchise Agreement?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
Withholding payment of the Royalty Fee or any other amounts due Franchisor is a material breach of this Agreement.
- 4.5.
Payment Terms.
All payments required by this Agreement shall be paid within the time Franchisor specifies, provided that such day is a Business Day (the "Due Date").
If the Due Date is not a Business Day, payment is due on the next Business Day.
- 4.6.
Payment Procedures.
Within 10 days following the end of each calendar month during the Term, you shall submit to Franchisor a statement of your Gross Sales and such other information as Franchisor may periodically require along with payment of the Royalty Fee for the month.
- 4.7.
Electronic Fund Transfer.
You shall participate in Franchisor's then-current electronic funds transfer program authorizing Franchisor to use a pre-authorized bank draft system.
You shall: (a) comply with Franchisor's procedures, as specified in the Manuals or otherwise in writing; (b) perform those acts and sign and deliver those documents as may be necessary to accomplish payment by electronic funds transfer as described in this Section 4.7.; (c) give Franchisor an authorization in the form designated by Franchisor to initiate debit entries and/or credit correction entries to the Account for payments of the Royalty Fee and other amounts payable under this Agreement, including any interest charges; and (d) make sufficient funds available in the Account for withdrawal by electronic funds transfer no later than the Due Date for each payment thereof.
Notwithstanding the provisions of this Article 4, Franchisor reserves the right to modify, at its option, the method by which you pay the Royalty Fee and other amounts owed under this Agreement upon receipt of written notice by Franchisor.
Your failure to have sufficient funds in the Account is a material breach of this Agreement.
- 4.8.
Interest; Nonsufficient Funds Charge.
Any payments not received by Franchisor by the Due Date will accrue interest at the rate of 18% per annum or the highest lawful interest rate permitted by the jurisdiction in which the Franchised Business operates, whichever is less.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, withholding payment of the Royalty Fee constitutes a material breach of the Franchise Agreement. Franchisees are obligated to pay all required fees within the time frame specified by All Dogs Unleashed, provided that the due date falls on a business day. If the due date is not a business day, the payment is due on the next business day.
All Dogs Unleashed franchisees must submit a statement of their Gross Sales along with the Royalty Fee payment within 10 days following the end of each calendar month. Franchisees are also required to participate in All Dogs Unleashed's electronic funds transfer program, which authorizes All Dogs Unleashed to use a pre-authorized bank draft system for payments. Franchisees must ensure sufficient funds are available in their account for withdrawal by the due date. Failure to maintain sufficient funds also constitutes a material breach of the agreement.
Late payments are subject to interest at a rate of 18% per annum, or the highest lawful interest rate permitted in the jurisdiction where the All Dogs Unleashed franchised business operates, whichever is less. However, All Dogs Unleashed retains the right to modify the payment method for Royalty Fees and other amounts owed under the agreement with written notice to the franchisee.