In the event of a dispute regarding a Dog Haus Development Agreement that proceeds to mediation, who is responsible for covering the expenses of the mediator?

According to Dog Haus's 2025 Franchise Disclosure Document, in the event of a dispute regarding the Development Agreement that proceeds to mediation, the expenses of the mediator will be shared equally between the franchisee and Dog Haus. If mediation does not resolve the dispute, the matter will proceed to binding arbitration in Los Angeles, California, where again, the fees and expenses of the arbitrator will be shared equally. This applies subject to applicable state law.

This arrangement means that a prospective Dog Haus franchisee will need to budget for their share of mediation and arbitration costs should a dispute arise. Sharing the costs equally is a fairly standard practice in franchising, as it ensures both parties have a vested interest in resolving the dispute efficiently and fairly. It prevents either party from being financially burdened by the entire cost of the dispute resolution process.

It is important for a potential Dog Haus franchisee to understand that while the initial mediation is required to take place in Los Angeles, California, the agreement is subject to applicable state law, which could potentially influence the mediation or arbitration process. Therefore, consulting with a legal professional to understand how local laws might affect this clause is advisable. Furthermore, the franchisee should be aware of the potential costs associated with mediation and arbitration, including legal fees, travel expenses, and their portion of the mediator's or arbitrator's fees, and factor these into their financial planning.