Is the choice of forum for Dog Haus proceedings subject to any exceptions?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section In | |||
|---|---|---|---|
| Franchise | |||
| Agreement | |||
| (Exhibit A) and | |||
| in Remote | |||
| Kitchen | |||
| Addendum | |||
| Provision | (Exhibit C) | Summary | |
| s. | Modification of the | Franchise | The Franchise Agreement can be modified or amended only by |
| agreement | Agreement | written agreement of all of the parties. The Manuals are subject | |
| Sections 6.5 and | to change at any time. You must comply with any changes set | ||
| 21.5; Remote | forth in the Manuals. Remote Kitchen Addendum can be | ||
| Kitchen | modified or amended only by written agreement of all the | ||
| Addendum | parties. (Remote Kitchen Addendum) | ||
| Section 9.2 | |||
| t. | Integration/ merger | Franchise | Only the terms of the Franchise Agreement and other related |
| clause | Agreement | written agreements are binding (subject to applicable state law). | |
| Section 21.5; | Any | ||
| representations or | |||
| promises | |||
| outside | |||
| the disclosure | |||
| Remote Kitchen | document and franchise agreement may not be enforceable. | ||
| Addendum | Only the terms of the Franchise Agreement and Remote Kitchen | ||
| Section 9.2; | Addendum and its exhibits are binding (subject to applicable | ||
| state law). No other representations or promises will be binding. | |||
| (Remote Kitchen Addendum) | |||
| u. | Dispute resolution by | Franchise | You agree to attempt any dispute first by mediation, which will |
| arbitration or | Agreement | occur in Los Angeles, California. Mediation must be completed | |
| mediation | Sections 19.1 | within 45 days following the date either party first gives notice | |
| and 19.2 | of mediation, unless otherwise agreed in writing. The fees and | ||
| expenses of the mediator will be shared equally by you and us. | |||
| If the parties cannot resolve and settle the dispute through | |||
| mediations, all unresolved claims between you and us will be | |||
| submitted to binding arbitration, which will occur in Los | |||
| Angeles, California. The fees and expenses of the arbitrator will | |||
| be shared equally by you and us. | |||
| (subject to applicable state law) | |||
| v. | Choice of forum | Franchise | All proceedings will be held in Los Angeles County, California, |
| Agreement | subject to applicable state law. See the State Specific Addenda | ||
| Section 19.3 | (Exhibit H) attached to this Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the choice of forum for all proceedings will be in Los Angeles County, California. However, this is subject to applicable state law, meaning that if state law dictates a different venue or process, that law would take precedence. Prospective franchisees should carefully review the State Specific Addenda (Exhibit H) to understand if their state has any specific laws that might affect the location of legal proceedings.
This clause is important because it dictates where a franchisee would have to travel and engage legal counsel should a dispute arise with Dog Haus. Litigating or arbitrating in Los Angeles could significantly increase expenses for a franchisee located elsewhere due to travel costs, attorney fees, and other related costs. The "subject to applicable state law" caveat provides a degree of protection, but franchisees should not assume it will always override the Los Angeles County forum selection.
It is typical for franchise agreements to include forum selection clauses that favor the franchisor's home jurisdiction. This allows the franchisor to manage legal disputes more efficiently and consistently. However, some states have enacted laws that restrict or prohibit such clauses, particularly if they are deemed unduly burdensome on the franchisee. Therefore, prospective Dog Haus franchisees should consult with a legal professional to understand the implications of this clause in their specific state and to assess the potential costs and inconveniences associated with litigating or arbitrating in Los Angeles County.