Does the All Dogs Unleashed agreement permit franchisees to bring claims on an associational basis?
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 or collective actions against the franchisor. Specifically, the agreement stipulates that any arbitration or litigation between a franchisee (or their owners/guarantors) and All Dogs Unleashed (or any related party) must be conducted on an individual basis.
This means that franchisees cannot combine their claims into a single class-wide, associational, or collective action. Each franchisee must pursue their claims independently. This clause is designed to prevent franchisees from uniting to bring large-scale lawsuits against All Dogs Unleashed, which could be costly and time-consuming for the franchisor.
The inclusion of this clause is a common practice in franchise agreements. It aims to limit the franchisor's exposure to large, consolidated legal actions. However, it may also place franchisees at a disadvantage, as they may have fewer resources to pursue individual claims compared to participating in a class action. Prospective franchisees should carefully consider this provision and its potential implications for their legal rights and options.
While this restriction limits the ability of franchisees to act collectively in legal disputes, it does not prevent them from forming franchisee associations for other purposes, such as negotiating with All Dogs Unleashed or sharing best practices. However, any legal action must still be pursued individually.