For an All Dogs Unleashed franchise, what does the FAA preempt regarding the arbitration provision?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
arbitration provision in this Agreement is unenforceable. Each party agrees that it has had full opportunity to consult with counsel concerning this waiver, and that this waiver is informed, voluntary, intentional, and not the result of unequal bargaining power.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the arbitration provision within the franchise agreement is deemed unenforceable. This means that any disputes arising between the franchisee and All Dogs Unleashed will not be subject to mandatory arbitration.
This waiver indicates that both All Dogs Unleashed and the franchisee have consciously agreed to forgo arbitration as a means of resolving conflicts. The document emphasizes that both parties have had the opportunity to seek legal counsel regarding this waiver, affirming that it is a voluntary and informed decision, not influenced by an imbalance of power.
The practical implication for a potential All Dogs Unleashed franchisee is significant. Should a dispute arise, the franchisee retains the right to pursue legal action in court rather than being compelled to resolve the issue through arbitration. This can offer more flexibility in legal strategy and potentially a more transparent and public resolution process. However, it also means the franchisee should be prepared for the possibility of litigation, which can be more costly and time-consuming than arbitration.