Who is bound by the limitations on claims outlined in the All Dogs Unleashed agreement?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Damage Waiver. Each of the parties EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES; except that this waiver and limitation does not apply with respect to (a) your obligation to indemnify us under any provision of this Agreement, or (b) any claims we bring against you and/or your guarantors and/or your owners for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, unfair competition, breach of your confidentiality or non-competition covenants under this Agreement, and/or any cause of action under the Lanham Act, and we are entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
- (c) Each of the parties EXPRESSLY AGREE(S) THAT IN THE EVENT OF ANY FINAL DETERMINATION, ADJUDICATION OR APPLICABLE ENACTMENT OF LAW THAT PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES MAY NOT BE WAIVED, ANY RECOVERY BY ANY PARTY IN ANY ARBITRATION OR OTHER FORUM MUST NEVER EXCEED 2 TIMES ACTUAL DAMAGES, except that we may recover more than 2 times our actual damages if you commit acts of willful trademark infringement or otherwise violate the Lanham Act, as provided by law.
- (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)
Based on the 2025 All Dogs Unleashed Franchise Disclosure Document, the limitations on claims apply to both the franchisee and All Dogs Unleashed. Specifically, both parties waive the right to claim punitive, multiple, or exemplary damages, with certain exceptions. This mutual waiver affects the legal recourse available to either party in case of disputes.
However, the waiver does not apply to the franchisee's obligation to indemnify All Dogs Unleashed under the agreement. It also does not apply to claims brought by All Dogs Unleashed against the franchisee, their guarantors, or owners for unauthorized use of the Marks, confidential information, unfair competition, or breaches of confidentiality or non-competition covenants. In these specific cases, All Dogs Unleashed retains the right to seek multiple damages, attorneys' fees, and all damages as provided by law.
Furthermore, if punitive, multiple, or exemplary damages cannot be waived due to a final legal determination, adjudication, or applicable law, any recovery by either party is capped at two times the actual damages. An exception exists for All Dogs Unleashed, which may recover more than two times their actual damages if the franchisee commits willful trademark infringement or violates the Lanham Act. This clause sets a limit on potential damage claims while protecting All Dogs Unleashed's intellectual property rights.
Finally, the agreement stipulates that any arbitration or litigation between the 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. Class-wide, associational, or collective actions are not permitted. This provision prevents franchisees from joining together to bring claims against All Dogs Unleashed, limiting the franchisor's exposure to large-scale legal actions.