Does the Dog Haus franchise agreement address dispute resolution through mediation?
Dog_Haus Franchise · 2025 FDDAnswer 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.