Does the Dog Haus franchise agreement specify that unresolved claims will be submitted to binding arbitration?

According to Dog Haus's 2025 Franchise Disclosure Document, the Franchise Agreement outlines a dispute resolution process. Initially, both parties agree to attempt to resolve any disputes through mediation in Los Angeles, California. This mediation must conclude within 45 days from the initial notice, unless both parties agree to extend the period in writing. The costs associated with the mediator are to be shared equally between Dog Haus and the franchisee.

If mediation fails to resolve the dispute, the Franchise Agreement stipulates that all unresolved claims between Dog Haus and the franchisee will be submitted to binding arbitration. This arbitration will also take place in Los Angeles, California. Similar to mediation, the fees and expenses of the arbitrator are to be shared equally by both parties. This clause is subject to applicable state laws, which may provide additional protections or requirements.

This mandatory arbitration clause means that a franchisee gives up the right to sue Dog Haus in court and instead must resolve disputes through a private arbitration process. While arbitration can sometimes be faster and less expensive than litigation, the arbitrator's decision is generally final and binding, with limited options for appeal. Prospective franchisees should consider the implications of this clause, including the location of arbitration (Los Angeles) and the cost-sharing arrangement, and consult with legal counsel to understand their rights and obligations.