Who bears the costs of arbitration for Canine Dimensions Franchise Agreement disputes?

According to Canine Dimensions' 2025 Franchise Disclosure Document, the costs of arbitration are borne by both the franchisee and franchisor. Specifically, in the addendum for California franchisees, it states that if the franchise agreement requires binding arbitration, the arbitration will occur in Florida, with the costs being borne by both parties.

This means that if a Canine Dimensions franchisee in California has a dispute that goes to arbitration, they will be responsible for a portion of the arbitration costs. This is regardless of whether they win or lose the arbitration case. Arbitration costs can include filing fees, arbitrator fees, and other administrative expenses. These costs can potentially be significant, adding to the financial burden of resolving a dispute.

It is important to note that the FDD mentions that California franchisees are encouraged to seek legal counsel to determine the applicability of California and federal laws to any provisions of a franchise agreement restricting venue to a forum outside the State of California. It also notes that a binding arbitration provision may not be enforceable under generally applicable contract defenses, such as fraud, duress, or unconscionability.

For prospective franchisees in states other than California, the FDD does not specify how arbitration costs are divided. Therefore, it is crucial for potential franchisees to carefully review the franchise agreement and any state-specific addenda to understand their obligations regarding arbitration costs. They should also consult with an attorney to fully understand the implications of the arbitration clause and how it may affect their rights and responsibilities.