What rules of the AAA govern the arbitration process for All Dogs Unleashed franchise disputes?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3.1. Any dispute, controversy, or claim between the parties or their respective Affiliates or Owners including, without limitation, claims arising out of or relating to this Agreement and the relationships created hereby that are not solved during the mediation process described in Section 19.2 must be resolved by arbitration. The arbitration must be administered in accordance with the Commercial Rules of the AAA. The Arbitrator must be a person experienced in food service franchising or franchise law who has no prior business or professional relationship with either party. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) ("FAA"). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction, and the arbitrator must state in writing the reasoning upon which the award is based. The costs and expenses of arbitration paid to the AAA or to the arbitrator will be paid equally by the parties. All other arbitration-related expenses, including but not limited to attorneys' fees and travel expenses, will be paid by the party which incurred such expense.
- 19.3.2. Arbitration will be conducted in the city in which Franchisor maintains its principal business office at the time of the arbitration. Arbitration will be conducted on an individual, not a class-wide basis, and an arbitration proceeding between the parties and their respective Owners, officers, directors, agents, and/or employees may not be consolidated with any other arbitration proceeding between Franchisor and any other person. The arbitrator has no power or authority to award punitive damages.
- 19.3.3. Any disputes concerning the enforceability or scope of this arbitration provision must be
resolved pursuant to the FAA, and the parties agree that the FAA preempts any state law restrictions (including the site of the arbitration) on the enforcement of this arbitration provision.
- 19.3.4.
If you institute any claim subject to this arbitration proceeding in any court, and Franchisor succeeds in a motion to compel arbitration of the claim, you must reimburse Franchisor its reasonable attorneys' fees and costs in defending the action and in its motion to compel arbitration.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, any dispute that cannot be resolved through mediation must be settled by arbitration. The arbitration process will be managed according to the Commercial Rules of the American Arbitration Association (AAA). The selected arbitrator must have experience in food service franchising or franchise law and must not have had any prior business or professional relationship with either party involved in the dispute. The Federal Arbitration Act (FAA) governs all aspects of the arbitration. The arbitrator is required to provide a written explanation of the reasoning behind their decision. The costs and expenses paid to the AAA or the arbitrator will be split equally between the parties, while other arbitration-related expenses, such as attorney's fees and travel, will be the responsibility of the party incurring them.
The arbitration will take place in the city where All Dogs Unleashed has its primary business office at the time of the arbitration. The arbitration will be conducted on an individual basis and cannot be part of a class-wide action. The arbitrator is not authorized to award punitive damages. Any disagreements regarding the enforceability or scope of the arbitration provision will be resolved under the FAA, which supersedes any state laws that might restrict the enforcement of this provision.
If a franchisee initiates a claim in court that is subject to arbitration, and All Dogs Unleashed successfully compels arbitration, the franchisee is responsible for reimbursing All Dogs Unleashed for its reasonable attorney's fees and costs associated with defending the action and compelling arbitration. This clause emphasizes the importance of adhering to the arbitration agreement and discourages franchisees from attempting to bypass it through court filings. This could potentially add significant costs for a franchisee who unsuccessfully tries to avoid arbitration.