Under what law will matters relating to mediation or arbitration be governed for All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
19.3. Arbitration.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the Federal Arbitration Act (FAA) will govern all matters relating to arbitration. Specifically, Section 19.3.1 states that any dispute that is not resolved during mediation must be settled by arbitration, which will be administered according to the Commercial Rules of the AAA.
Section 19.3.3 further clarifies that any disputes concerning the enforceability or scope of the arbitration provision must be resolved pursuant to the FAA. The agreement explicitly states that the FAA preempts any state law restrictions, including those related to the arbitration site, on the enforcement of the arbitration provision. This means that federal law takes precedence over state laws in determining how the arbitration process is conducted and enforced.
This preemption is a significant point for prospective franchisees. It ensures a uniform standard for arbitration across different states, potentially streamlining dispute resolution. However, franchisees should be aware of the implications of the FAA, as it may affect their rights and options compared to what state laws might provide. It is advisable to seek legal counsel to fully understand the impact of the FAA on their specific circumstances and rights under the All Dogs Unleashed franchise agreement.