Who bears their own costs of arbitration in a Dog Haus dispute?

Based on the 2025 Dog Haus Franchise Disclosure Document, in the event of a dispute between the franchisor and the area developer, both parties are responsible for their own costs, except as provided in Section 15.5. Specifically, Dog Haus and the area developer agree to waive any right to punitive or exemplary damages and are limited to recovering only the actual damages proven to have been sustained by that party.

This means that a Dog Haus franchisee will generally bear their own legal costs, such as attorney fees and court costs, unless there is a specific provision allowing for the recovery of these costs. This arrangement is fairly standard in franchising, as it encourages both parties to act reasonably and avoid frivolous claims. However, it also means that a franchisee could incur significant expenses in pursuing a legitimate claim against the franchisor.

It is important for prospective Dog Haus franchisees to carefully review Section 15.5 of the franchise agreement to understand the specific circumstances under which they may be able to recover their legal costs. They should also consider the potential financial burden of pursuing a dispute through arbitration or litigation and factor this into their decision-making process. Understanding these financial responsibilities is crucial for any potential franchisee.