Are there any specific claims that All Dogs Unleashed will not arbitrate?
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.
- (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)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the arbitration provision within the franchise agreement is explicitly deemed unenforceable. This means that All Dogs Unleashed and the franchisee both agree to waive their rights to resolve disputes through arbitration. The agreement emphasizes that both parties have had the opportunity to consult with legal counsel regarding this waiver, confirming it is informed, voluntary, intentional, and not a result of unequal bargaining power.
However, there are specific claims that All Dogs Unleashed will bring against a franchisee that will not be subject to this waiver. All Dogs Unleashed retains the right to pursue claims against franchisees (and their guarantors/owners) in court for unauthorized use of the Marks, unauthorized use or disclosure of confidential information, unfair competition, or breaches of confidentiality or non-competition covenants. Additionally, All Dogs Unleashed can pursue claims under the Lanham Act, and in such cases, is entitled to receive multiple damages, attorneys' fees, and all damages as provided by law.
Furthermore, the agreement specifies that neither party can pursue class or collective actions against the other. Any legal proceedings, whether arbitration or litigation, must be conducted on an individual basis, addressing only the specific claims of the party involved. This prevents franchisees from joining together to bring a single, large claim against All Dogs Unleashed, and vice versa. This is a fairly common clause in franchise agreements, intended to limit the franchisor's exposure to large, consolidated lawsuits.