Does the Dog Haus franchise agreement specify who is responsible for the arbitrator's fees?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In Area | Summary | |
|---|---|---|---|
| Development Agreement (Exhibit B) | 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 fees and expenses of the arbitrator will be shared equally between the franchisee and franchisor. This applies if mediation does not resolve the dispute, leading to binding arbitration in Los Angeles, California. The agreement specifies that this arrangement is subject to applicable state law.
This equal sharing of arbitrator fees is a fairly common practice in franchising. It means a prospective Dog Haus franchisee needs to budget for these potential costs when considering the investment. Arbitration can be a significant expense, so understanding this responsibility is crucial.
It is important to note that the initial step in dispute resolution is mediation, where the mediator's fees and expenses are also shared equally. Only if mediation fails does the case proceed to arbitration with the associated costs. This encourages both parties to attempt resolution through mediation first, potentially avoiding the more substantial expenses of arbitration.