Can the arbitrator certify a class or consolidated action in an All Dogs Unleashed arbitration?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
The decision of the arbitrator is final and binding on all parties to the dispute; however, the arbitrator may not under any circumstances: (1) stay the effectiveness of any pending termination of this Agreement; (2) assess punitive or exemplary damages; (3) certify a class or a consolidated action; or (4) make any award that extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the arbitrator does not have the authority to certify a class or consolidated action. The document explicitly states that the arbitrator may not, under any circumstances, "certify a class or a consolidated action." This means that any disputes between All Dogs Unleashed and a franchisee must be handled on an individual basis.
This restriction on class or consolidated actions has significant implications for prospective franchisees. It prevents franchisees from joining together to pursue claims against All Dogs Unleashed collectively. Each franchisee must pursue their claims independently, which can be more costly and time-consuming. This also means that the franchisee will be responsible for all arbitration-related expenses, including attorney's fees and travel expenses.
This clause is relatively common in franchise agreements. Franchise companies often include such clauses to avoid large, complex, and potentially costly class-action lawsuits. While this may protect All Dogs Unleashed from large-scale litigation, it places the burden on individual franchisees to resolve disputes on their own. Prospective franchisees should carefully consider this limitation and its potential impact on their ability to seek redress in case of a dispute with All Dogs Unleashed.