In an All Dogs Unleashed arbitration, is the arbitrator required to follow the law?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.5 The arbitrator will have subpoena powers limited only by the laws of the State of Texas. The parties ask that the arbitrator limit discovery to the greatest extent possible consistent with basic fairness to minimize the time and expense of arbitration. The parties to the dispute must otherwise have the same discovery rights as are available in civil actions under the laws of the State of Texas. All other procedural matters are determined by applying the statutory, common laws, and rules of procedure that control a court of competent jurisdiction in the State of Texas.
- 8.2.6 Other than as required by law, the entire arbitration proceedings (including, without limitation, any rulings, decisions or orders of the arbitrator), must remain confidential and must not be disclosed to anyone other than the parties to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding is expected to adhere to the law. Specifically, all procedural matters are determined by applying the statutory and common laws, as well as the rules of procedure, that would control a court of competent jurisdiction in the State of Texas.
This means that the arbitration process will largely mirror the legal standards and practices of the Texas court system. This provides a level of predictability and legal grounding to the arbitration, as opposed to a completely free-form process. Franchisees can expect the arbitrator to consider relevant legal precedents and rules during the proceedings.
However, the FDD also states that the arbitration proceedings must remain confidential, unless otherwise required by law. This confidentiality clause means that the details of the arbitration, including rulings and decisions, cannot be disclosed to anyone other than the parties involved in the Franchise Agreement. This could limit the franchisee's ability to share information about the arbitration process or outcome with others, even if they believe it could be beneficial to other franchisees or prospective franchisees.