Can arbitration proceedings involving All Dogs Unleashed be conducted on a class-wide basis?

According to the 2025 All Dogs Unleashed Franchise Disclosure Document, franchisees are prohibited from pursuing class-wide arbitration against the company. The agreement specifies that any arbitration or litigation must be conducted on an individual basis, meaning each franchisee must pursue their claims separately. This prevents franchisees from consolidating their claims into a single class action against All Dogs Unleashed.

This clause has significant implications for prospective franchisees. It means that if a franchisee has a dispute with All Dogs Unleashed, they cannot join forces with other franchisees who have similar grievances to pursue a collective action. Instead, they must bear the costs and risks of arbitration or litigation on their own. This can be a disadvantage, as it may be more difficult and expensive for individual franchisees to challenge the franchisor, especially in cases involving complex legal or financial issues.

However, the FDD also states that arbitration will be conducted in the city where All Dogs Unleashed maintains its principal business office. The arbitrator must have experience in food service franchising or franchise law and have no prior business or professional relationship with either party. The costs and expenses of arbitration paid to the AAA or to the arbitrator will be paid equally by the parties. All other arbitration-related expenses, including but not limited to attorneys' fees and travel expenses, will be paid by the party which incurred such expense.

While the arbitration process aims to provide a fair resolution, the prohibition of class actions limits the collective power of franchisees. Prospective franchisees should carefully consider this clause and its potential impact on their ability to resolve disputes with All Dogs Unleashed.