Does the All Dogs Unleashed agreement allow for class-wide arbitration or litigation?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) No Class or Collective Actions. You agree that any arbitration, or, if applicable, litigation, between you (or any of your owners or guarantors), on the one hand, and us or any All Dogs Unleashed Franchise Related Party, on the other hand, will be on that party's individual claim and that the claim or claims subject to arbitration and/or litigation must not be arbitrated or litigated on a class-wide, associational or collective basis.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, franchisees are prohibited from pursuing class-wide, associational, or collective claims against All Dogs Unleashed. The franchise agreement specifies that any arbitration or litigation must be conducted on an individual basis. This means a franchisee cannot join with other franchisees to bring a single claim.
This clause is intended to prevent franchisees from uniting to pursue large-scale legal actions against All Dogs Unleashed. It ensures that any disputes are handled on a case-by-case basis, potentially reducing the franchisor's overall legal risk. However, it also means that franchisees must bear the full cost and effort of pursuing their own individual claims, even if other franchisees have similar grievances.
For a prospective All Dogs Unleashed franchisee, this provision has significant implications. If a franchisee believes they have been wronged by All Dogs Unleashed, they cannot rely on a class action to share legal costs and resources. They must independently pursue their claim, which may be a deterrent for some franchisees, especially if the potential damages are not substantial enough to justify the expense of individual litigation or arbitration. This is a fairly standard practice in franchising, as franchisors often seek to limit their exposure to large, coordinated legal challenges from franchisees.