Does the All Dogs Unleashed arbitration agreement allow for class action claims?
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. The agreement specifies that any arbitration or litigation must be conducted on an individual basis, meaning franchisees cannot join together to bring claims as a group. This waiver extends to the franchisee, their owners, and guarantors, as well as All Dogs Unleashed and any related parties.
This clause means that each All Dogs Unleashed franchisee must address disputes with the franchisor independently. This can be a disadvantage for franchisees, as it may be more difficult and expensive to pursue a claim on their own compared to being part of a class action. Class actions allow for the pooling of resources and expertise, potentially leading to a stronger case against the franchisor.
However, the FDD also states that each party acknowledges they had the opportunity to consult with counsel regarding this waiver, confirming it is informed, voluntary, and intentional. This suggests that franchisees are aware of the implications of waiving their right to participate in class or collective actions when they sign the agreement. Franchisees should carefully consider this provision and seek legal advice to fully understand their rights and obligations.
It is common for franchise agreements to include clauses that restrict or prohibit class action lawsuits, as franchisors often prefer to handle disputes on an individual basis. Prospective All Dogs Unleashed franchisees should weigh the benefits and drawbacks of this provision before entering into the agreement, considering the potential impact on their ability to resolve disputes with the franchisor in the future.