factual

Does the Dog Haus franchise agreement address dispute resolution through mediation?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

Section In
Franchise
Agreement
(Exhibit A) and
in Remote
Kitchen
Addendum
Provision (Exhibit C) Summary
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)

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 franchise agreement does address dispute resolution through mediation. The FDD states that any dispute must first be attempted through mediation, which will occur in Los Angeles, California. This mediation must be completed within 45 days following the date either party first gives notice of mediation, unless otherwise agreed to in writing.

The fees and expenses of the mediator will be shared equally between Dog Haus and the franchisee. If mediation is unsuccessful in resolving the dispute, all unresolved claims will be submitted to binding arbitration, also in Los Angeles, California. The fees and expenses of the arbitrator will also be shared equally, subject to applicable state law.

This clause is fairly standard in franchise agreements, as it encourages parties to resolve disputes amicably and efficiently before resorting to costly and time-consuming litigation. By requiring mediation first, Dog Haus and its franchisees have an opportunity to find common ground and preserve their business relationship. The 45-day timeframe for mediation provides a structured approach to the process, preventing it from dragging on indefinitely. The agreement also specifies that the location for both mediation and arbitration is Los Angeles, California, which may present a cost challenge for franchisees located outside of California.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.