What state's substantive law will the arbitrator apply in a Canine Dimensions arbitration?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, including any claim that this Agreement or any part hereof is invalid, illegal, or otherwise voidable or void, shall be submitted to final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA"), before a single arbitrator chosen in accordance with such rules, and judgment upon the award may be entered in any court having jurisdiction over the parties; provided, however, that this provision shall not be construed to limit any rights which Franchisor may have to apply to any court of competent jurisdiction for injunctive or similar provisional relief. The substantive law of the State of Florida shall be applied by the arbitrator. The award of the arbitrator may include reasonable costs and attorneys' fees to the prevailing party, and such awards are binding upon all parties and may be entered as a judgment in any court having jurisdiction. The arbitrator must issue a written opinion explaining the reasons for his or her decision and award and the arbitrator will have the right to award or include in the award the specific performance of this Agreement. This arbitration provision shall be deemed self-executing. If a party fails to appear at any properly noticed arbitration proceeding, and award may be entered against such party notwithstanding the failure to appear. The parties agree that such arbitration shall be conducted within five (5) miles of Franchisor's headquarters. The parties intend and agree that any state laws attempting to prohibit arbitration or void out-of-state forums for arbitration are preempted by the Federal Arbitration Act and that arbitration will be conducted as provided in this section.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the substantive law of Florida will be applied by the arbitrator in any arbitration proceeding. This means that the arbitrator will use Florida's legal principles and precedents to resolve any disputes arising from the franchise agreement.
This is important for prospective franchisees to understand because the laws of Florida will govern the interpretation and enforcement of the franchise agreement, regardless of where the franchisee is located. Franchisees should familiarize themselves with Florida law or seek legal counsel to understand their rights and obligations under the agreement.
It is also worth noting that the arbitration will be conducted within five miles of Canine Dimensions' headquarters, which is likely in Florida. The FDD also states that the arbitrator's award may include reasonable costs and attorneys' fees to the prevailing party and that the arbitrator must issue a written opinion explaining the reasons for the decision and award.