Effective Date: October 15, 2026 Version: 1.0 Applies to: All persons and businesses that apply for a franchise, and the Company as franchisor in the evaluation of each application.
Article 1: Introduction and Scope
1.1 This Policy states the qualifications an applicant for a franchise must meet, the contents of the application, the stages by which the Company evaluates an application, and the standards that govern approval and denial. A Franchisee operates under the Company's brand, handles animals, takes customer payments, and represents the franchise system to the public. The eligibility requirements in this Policy protect the brand, the network of Franchisees, and the applicant; approval of an applicant that lacks the capital to sustain the business establishes the conditions for failure under the Company's brand.
1.2 Approval is discretionary within the standards in this Policy. Satisfaction of each minimum qualification does not entitle an applicant to a franchise, and no provision of this Policy, no portal page, and no statement by a representative of the Company promises approval to any applicant. A franchise is granted only by a signed Franchise Agreement executed after delivery of the Franchise Disclosure Document, as Article 5 provides.
1.3 The Franchise Disclosure Document controls the offer and sale of franchises. No policy, portal page, or representative of the Company makes any earnings claim or financial performance representation; a financial performance representation, if made at all, appears only in Item 19 of the Franchise Disclosure Document. Where the franchise law of the state in which the franchised business is located gives the applicant or Franchisee rights greater than this Policy, that law prevails to the extent of the conflict.
1.4 This Policy implements the Franchise Program Policy and the Franchise Agreement Policy. If a provision of this Policy conflicts with the Terms of Use, this Policy controls for the subject it governs.
Article 2: Definitions
2.1 Account: the account a person or business establishes with the Company to use the Platform.
2.2 Applicant: a person or business that submits an application for a franchise, including each principal of an Applicant entity.
2.3 Company: All About Pawz, LLC, a Tennessee limited liability company, acting as franchisor.
2.4 Franchise Agreement: the written franchise agreement between the Company and a Franchisee, signed by both parties after delivery of the Franchise Disclosure Document.
2.5 Franchise Disclosure Document: the disclosure document the Company furnishes to a prospective Franchisee under the Federal Trade Commission Franchise Rule, 16 CFR Part 436.
2.6 Franchisee: a person or business that holds a signed Franchise Agreement.
2.7 Operating Principal: the individual designated by an Applicant or Franchisee as the person who operates the franchised business on a day-to-day basis.
2.8 Platform: the websites, applications, and services the Company operates under the name All About Pawz, including aapawz.com.
2.9 Products: goods offered for sale through the Platform.
2.10 Services: services offered through the Platform, including grooming, veterinary, pharmacy, and fulfillment services, as applicable.
2.11 User: any person who accesses or uses the Platform, whether or not the person holds an Account.
Article 3: Eligibility and Registration
3.1 Legal capacity. An Applicant shall be at least twenty-one (21) years of age where the Applicant is an individual, shall be of good character, and shall be legally entitled to operate a business in the jurisdiction of the proposed territory. An Applicant entity shall be formed or formable in that jurisdiction, shall be able to obtain each license the business requires, and shall be subject to no legal bar to business ownership.
3.2 Financial qualification. An Applicant shall demonstrate, by financial statements and supporting records, the capital required to: (a) pay the initial franchise fee stated in the Franchise Disclosure Document and the Franchise Agreement; (b) fund the build-out of the location to the standards in the Franchise Brand Standards Policy; and (c) sustain operations through the period before the business reaches positive cash flow, with a reserve beyond the amounts in clauses (a) and (b). The minimum net worth and liquidity amounts that define financial qualification are stated in the Franchise Disclosure Document; this Policy states the structure of the qualification and states no separate amount. An Applicant that cannot satisfy this Article has not met the financial qualification, regardless of the Applicant's other qualifications.
3.3 Operating qualification. The Applicant, or the Applicant's designated Operating Principal, shall complete the training program under the Franchise Training Policy before the location opens. Prior experience in the pet industry is preferred and is not required where training is completed. The training requirement does not substitute for the financial qualification in Article 3.2 or the background requirements in Article 3.4.
3.4 Background. The Applicant and each principal shall pass the background review the Company conducts. The following are disqualifying and are not subject to waiver: (a) a felony fraud conviction; (b) a conviction for animal cruelty; and (c) a conviction for animal neglect. Other criminal history is evaluated on the facts of the matter, including the nature of the offense, the time elapsed, evidence of rehabilitation, and the relevance of the offense to operating a customer-facing business that handles animals.
Article 4: The Application
4.1 The application is submitted through the Company's franchise application process. Business name, owner name, and owner email are required at intake; an application without each of those items is incomplete. The complete application states: (a) identity and business information; (b) financial statements supporting Article 3.2; (c) the business plan for the proposed territory; (d) each proposed location; and (e) the background information for the Operating Principal and each principal.
4.2 Disclosure duties. The Applicant shall disclose: (a) each business failure and bankruptcy of the Applicant or a principal within ten (10) years before the application; (b) each prior franchise termination or non-renewal involving the Applicant or a principal, with the reasons; (c) litigation history material to the application, including fraud, breach of contract, and regulatory actions; and (d) each relationship between the Applicant or a principal and an existing Franchisee, whether familial, business, or financial. A relationship not disclosed under clause (d) that the Company later discovers is treated as a disclosure failure under Article 4.3, whether or not the omission was intentional.
4.3 Material misrepresentation. A material misrepresentation in the application, including a concealed bankruptcy, a fabricated net worth statement, or a concealed franchise termination, is grounds for denial. Where a material misrepresentation is discovered after signing, the misrepresentation is grounds for termination under the Franchise Termination Policy within the first year after signing, in addition to each ground stated there.
Article 5: Approval Process
5.1 An application proceeds through the following stages, each of which the Applicant must complete: (a) completeness review, completed within five (5) business days of submission, in which the Company returns an incomplete application with each gap itemized; (b) financial and background verification, in which the Company verifies the qualifications in Articles 3.2 and 3.4 against the statements and records submitted; (c) an interview at which the Applicant meets the Company's team and observes the operations, and at which the Applicant evaluates the system; (d) territory confirmation under the Franchise Territory Policy, in which the Company confirms that the proposed territory is available and is the appropriate territory for the Applicant; (e) delivery of the Franchise Disclosure Document, on which the period in Article 5.2 begins; and (f) execution of the Franchise Agreement under the Franchise Agreement Policy, after which onboarding proceeds under the Franchise Onboarding Policy.
5.2 Disclosure before payment or signing. The Company shall deliver the Franchise Disclosure Document before the Applicant pays any amount or signs any agreement. No payment is accepted and no agreement is signed until at least fourteen (14) calendar days have run after delivery, in accordance with the Franchise Rule and the Franchise Program Policy. The Company shall keep a record proving the date of delivery for each Applicant.
5.3 Denials state the reason. The Company shall state the actual reason for a denial in writing, including a capital shortfall with the gap quantified, a disqualifying background matter, or the unavailability of the proposed territory. A formulaic statement that an application was considered and declined does not satisfy this Article.
5.4 Reapplication. Where the reason for denial is capable of cure, including a capital shortfall or insufficient experience, the Applicant may reapply after twelve (12) months. A reapplication receives a fresh evaluation on the record submitted with the reapplication. Where the reason for denial is a disqualifying matter under Article 3.4, the decision is final and no reapplication is accepted on the same facts.
5.5 Discretion within standards. Approval rests in the Company's discretion within the standards in this Policy. The Company may deny an application that meets each minimum qualification where the territory is unavailable, where franchise development is paused, or where the interview establishes that the Applicant is not suited to operate the business, provided the denial states the reason under Article 5.3 and the reason relates to the standards in this Policy. Discretion under this Article does not authorize a denial on a basis prohibited by law, including discrimination on a protected characteristic.
Article 6: Liability
6.1 Exclusion of certain damages. To the fullest extent permitted by law, neither party is liable to the other for indirect, incidental, special, punitive, or consequential damages, or for lost profits, lost revenue, or loss of goodwill, arising out of or relating to this Policy, even if the party has been advised of the possibility of those damages.
6.2 Cap. To the fullest extent permitted by law, the Company's total liability arising out of or relating to this Policy shall not exceed the greater of (a) the amounts the Applicant paid to the Company in connection with the application in the twelve months before the event giving rise to the claim, or (b) one hundred dollars ($100).
6.3 Carve-outs. This Article does not limit (a) a party's indemnification obligations under this Policy; (b) liability for fraud or willful misconduct; (c) amounts owed under a signed Franchise Agreement; or (d) liability that cannot be limited under applicable law.
6.4 Essential purpose. The parties agree that this Article allocates risk between them, that it is an essential part of the basis of their bargain, and that it applies even if a limited remedy fails of its essential purpose.
Article 7: Indemnification
7.1 Duty. The Applicant shall indemnify, defend, and hold harmless the Company and its members, managers, employees, and agents from and against every claim, demand, action, loss, liability, judgment, settlement, cost, and expense (including reasonable attorneys' fees) arising out of or relating to: (a) the Applicant's breach of this Policy; (b) a material misrepresentation in the application; (c) the Applicant's violation of any law or of the rights of any person in connection with the application; and (d) taxes for which the Applicant is responsible under the Company's documents.
7.2 Procedure. The Company shall give prompt written notice of a claim under this Article. The Applicant shall control the defense with counsel reasonably acceptable to the Company. The Company may participate in the defense at its own expense. The Applicant shall not settle a claim in a manner that imposes any obligation or restriction on the Company, or that does not release the Company fully, without the Company's prior written consent.
7.3 Survival. This Article survives the denial of an application and the termination of this Policy.
Article 8: Enforcement and Appeals
8.1 Investigation. The Company may investigate any suspected violation of this Policy, including the accuracy of an application. The Applicant shall cooperate with an investigation and shall produce the records this Policy requires the Applicant to submit.
8.2 Notice. If the Company determines that the Applicant has violated this Policy, the Company shall give written notice stating the provision violated and the facts relied on, except where notice would compromise an investigation of fraud or a legal obligation.
8.3 Opportunity to cure. Where a violation is capable of cure, the Applicant has ten (10) business days from notice to cure it and to confirm the cure in writing. No cure period applies to fraud, a material misrepresentation, a risk to the safety of a person or an animal, unlawful conduct, or a violation that by its nature cannot be cured.
8.4 Measures. If a violation is established and is not cured within the period allowed, the Company may, proportionate to the violation: (a) issue a written warning; (b) deny the application; (c) suspend consideration of the application; and (d) exercise any other right or remedy available under the Company's documents or at law.
8.5 Appeal. An Applicant may appeal a denial or other measure under this Article by written notice to legal@aapawz.com within thirty (30) days of the measure, stating the grounds and attaching the records relied on. The appeal is decided by a person who did not make the original decision. The Company's decision on appeal is final. An appeal does not create an entitlement to approval and does not replace a right the Applicant holds under applicable franchise law.
8.6 No waiver by delay. The Company's delay in acting on a violation is not a waiver of the violation or of any later violation of the same kind.
Article 9: Term and Termination
9.1 Where an Applicant becomes a Franchisee, the term of the franchise, the grounds for termination, the cure periods by ground, and the post-termination duties are stated in the Franchise Agreement and in the Franchise Termination Policy, which are incorporated into this Policy by reference and govern in place of a general termination article.
9.2 This Policy takes effect for an Applicant on submission of an application and continues until the application is approved, denied, or withdrawn, and, for a Franchisee, while the Franchise Agreement remains in effect. The Definitions, Liability, Indemnification, Enforcement and Appeals (for measures taken before the end of the period in this clause), Dispute Resolution, and General Provisions Articles survive, together with Article 4.3 as applied to a misrepresentation discovered after signing.
Article 10: Dispute Resolution
10.1 Any dispute arising out of or relating to this Policy, or to the relationship it governs, is governed by the Dispute Resolution Policy, which is incorporated into this Policy by reference. The Franchise Dispute Resolution Policy states the program procedure that applies in addition to the Dispute Resolution Policy.
Article 11: General Provisions
11.1 Amendments. The Company may amend this Policy by posting the amended Policy in the Document Center and giving notice to each affected Applicant at the email address stated in the application. An amendment that materially increases an Applicant's obligations takes effect thirty (30) days after notice; other amendments take effect on posting. Continued pursuit of an application after the effective date of an amendment is acceptance of it. An amendment to this Policy does not amend a signed Franchise Agreement.
11.2 Notices. Legal notices under this Policy shall be sent to legal@aapawz.com. Operational notices and all other communications shall be sent to support@aapawz.com. A notice to the Company is effective when the Company acknowledges receipt or, for email, one business day after sending, whichever is earlier. Notices to an Applicant are effective when sent to the email address stated in the application. The Applicant shall keep that email address current while the application is pending.
11.3 Governing law. This Policy is governed by the laws of the State of Tennessee, without regard to its conflict-of-laws rules. Subject to the Dispute Resolution Policy, any proceeding arising out of this Policy shall be brought in the state or federal courts located in Shelby County, Tennessee, and the parties consent to personal jurisdiction there. Where the franchise law of the state in which the franchised business is or is proposed to be located gives the Applicant or Franchisee rights greater than this Policy, that law prevails to the extent of the conflict.
11.4 Severability. If any provision of this Policy is held unenforceable, the provision shall be enforced to the fullest extent permitted, and the remaining provisions continue in full effect.
11.5 Entire agreement. This Policy, together with the documents it incorporates by reference, is the entire agreement between the Company and the Applicant for the subject of eligibility and approval and supersedes every prior or contemporaneous statement, communication, or agreement on that subject, whether written or oral. No statement excluded by Article 1.3 forms part of the agreement between the parties.
11.6 Assignment. The Applicant shall not assign this Policy, an application, or any right or obligation under either without the Company's prior written consent, and an assignment without consent is void. The Company may assign this Policy to an affiliate or in connection with a sale of all or part of its business, on notice to the Applicant.
11.7 Waiver. A waiver of any provision of this Policy is effective only in writing and only for the instance stated. No waiver is a waiver of any other provision or instance.
11.8 Interpretation. Headings are for convenience only. "Including" means "including without limitation." This Policy shall not be construed against a party as its drafter. The English-language text controls over any translation.
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