Who bears the costs of arbitration in a Canine Dimensions franchise dispute?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The franchise agreement requires binding arbitration. The arbitration will occur in Florida with the costs being borne by the franchisee and franchisor. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California. Business and Professions Code Section 20040.5 relating to forum selection clauses restricting venue outside the state of California or arbitration may be preempted by the Federal Arbitration Act. Section 20040.5 may still apply to any provision relating to judicial proceedings. A binding arbitration provision may not be enforceable under generally applicable contract defenses, such as fraud, duress, or unconscionability.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the costs of arbitration are addressed in a state-specific addendum for California franchisees.
Specifically, for franchises operating in California, the FDD states that in the event of binding arbitration, the costs will be shared between the franchisee and franchisor. This means that both Canine Dimensions and the franchisee will be responsible for covering their respective portions of the arbitration expenses.
It is important to note that this cost-sharing arrangement is specific to California. The document does not specify who bears the costs of arbitration for franchisees in other states. Prospective franchisees outside of California should seek clarification from Canine Dimensions regarding the allocation of arbitration costs in their specific jurisdiction. Additionally, the FDD advises prospective franchisees to consult with legal counsel to understand the applicability of state and federal laws to the franchise agreement's provisions, especially those related to venue restrictions and arbitration.