Can arbitration proceedings involving an All Dogs Unleashed franchise be conducted on a class-wide basis?
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, any arbitration between a franchisee and All Dogs Unleashed must be conducted on an individual basis, not a class-wide basis. This means that franchisees are prohibited from participating in class action lawsuits or collective arbitrations against the franchisor.
This clause ensures that each franchisee's dispute is handled separately, preventing the aggregation of claims into a single, larger case. This can be beneficial for All Dogs Unleashed as it limits their exposure to large-scale legal actions. However, it may pose a disadvantage for franchisees who might find it more efficient or cost-effective to join a class action with other franchisees facing similar issues.
Furthermore, the agreement specifies that an arbitration proceeding between the parties cannot be consolidated with any other arbitration proceeding between All Dogs Unleashed and any other person. This reinforces the individual nature of the arbitration process. The arbitrator also lacks the authority to award punitive damages, which could limit the potential financial recovery for a franchisee in a dispute.
It is important for prospective All Dogs Unleashed franchisees to understand this limitation on class actions and collective arbitrations, as it can impact their legal options in case of a dispute with the franchisor. Franchisees should consult with legal counsel to fully understand the implications of this clause and how it may affect their rights.