Where will arbitration be conducted for disputes involving All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
19.3.2. Arbitration will be conducted in the city in which Franchisor maintains its principal business office at the time of the arbitration. Arbitration will be conducted on an individual, not a class-wide basis, and an arbitration proceeding between the parties and their respective Owners, officers, directors, agents, and/or employees may not be consolidated with any other arbitration proceeding between Franchisor and any other person. The arbitrator has no power or authority to award punitive damages.
- 19.3.3. Any disputes concerning the enforceability or scope of this arbitration provision must be
resolved pursuant to the FAA, and the parties agree that the FAA preempts any state law restrictions (including the site of the arbitration) on the enforcement of this arbitration provision.
- 19.3.4.
If you institute any claim subject to this arbitration proceeding in any court, and Franchisor succeeds in a motion to compel arbitration of the claim, you must reimburse Franchisor its reasonable attorneys' fees and costs in defending the action and in its motion to compel arbitration.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, arbitration will be conducted in the city where All Dogs Unleashed maintains its principal business office at the time of the arbitration. This means that if a dispute arises that cannot be resolved through mediation, the arbitration proceedings will take place at the location of All Dogs Unleashed's headquarters.
This is a standard clause in many franchise agreements, as it centralizes legal proceedings in a location convenient for the franchisor. For a prospective All Dogs Unleashed franchisee, this could mean incurring travel and legal expenses to attend arbitration hearings if they are located far from the franchisor's principal business office. It is important to note that the arbitrator must have experience in food service franchising or franchise law and have no prior business or professional relationship with either party.
The FDD also specifies that arbitration will be conducted on an individual basis and not as part of a class-wide action. This prevents franchisees from joining together to pursue collective claims against All Dogs Unleashed. The arbitrator is also restricted from awarding punitive damages. Any disputes regarding the enforceability or scope of the arbitration provision will be resolved under the Federal Arbitration Act, which preempts any conflicting state laws.
Furthermore, if a franchisee initiates a claim in court that is subject to arbitration and All Dogs Unleashed successfully compels arbitration, the franchisee will be responsible for reimbursing All Dogs Unleashed's reasonable attorney's fees and costs associated with defending the court action and compelling arbitration. This provision underscores the importance of adhering to the arbitration clause and seeking legal counsel before initiating any legal proceedings against All Dogs Unleashed.