Is it permissible to consolidate an arbitration proceeding between All Dogs Unleashed and a franchisee with another arbitration proceeding?
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, franchisees are prohibited from engaging in class or collective action in arbitration or litigation against All Dogs Unleashed. The agreement specifies that any legal proceedings must be pursued on an individual basis, preventing franchisees from consolidating their claims with those of others. This restriction applies to the franchisee, their owners, and guarantors.
This clause means that each All Dogs Unleashed franchisee must pursue their disputes independently. They cannot join forces with other franchisees to present a unified case. This can be a disadvantage for franchisees, as it may increase their individual legal costs and reduce their bargaining power against the franchisor.
The prohibition of class or collective actions is a common practice in franchising. Franchisors often include such clauses to manage legal risks and avoid large-scale disputes involving multiple franchisees. However, franchisees should carefully consider the implications of this clause, as it can significantly impact their ability to seek redress in case of a dispute with All Dogs Unleashed.