Can an arbitration proceeding between All Dogs Unleashed and a franchisee be consolidated with any other arbitration proceeding?
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 All Dogs Unleashed's 2025 Franchise Disclosure Document, any arbitration or litigation between a franchisee (or their owners or guarantors) and All Dogs Unleashed or any All Dogs Unleashed Franchise Related Party must be conducted on an individual basis. The document explicitly states that claims cannot be arbitrated or litigated on a class-wide, associational, or collective basis. This means a franchisee cannot join their claim with other franchisees into a single, consolidated legal action against All Dogs Unleashed.
This "no class or collective actions" clause is a legal protection for All Dogs Unleashed. It prevents franchisees from uniting to file a single, large-scale claim, which could be more financially damaging to the company. However, it also means that a franchisee must bear the full cost and effort of pursuing their claim independently, even if other franchisees have similar grievances.
For a prospective All Dogs Unleashed franchisee, this clause has significant implications. If a dispute arises with All Dogs Unleashed, the franchisee will be responsible for their own legal expenses, regardless of whether other franchisees are experiencing the same issue. This could make it more difficult and expensive to pursue a claim against the franchisor. It is important to consider this factor when evaluating the potential risks and benefits of investing in an All Dogs Unleashed franchise.
While this clause restricts franchisees' ability to consolidate claims, it does not prevent them from seeking legal recourse individually. Franchisees still have the right to pursue arbitration or litigation against All Dogs Unleashed, but they must do so on their own, without the benefit of collective action.