If mediation fails to resolve a dispute with Dog Haus, where will binding arbitration occur?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
AL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP**
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
FRANCHISE AGREEMENT (INCLUDING REMOTE KITCHEN ADDENDUM)
| 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) | | v. Choice of forum | Section 15.1 | | All proceedings will be held in Los Angeles County, California, | | | | | subject to applicable state law. See the State Specific Addenda | | | | | (Exhibit H) attached to this Disclosure Document. | | w. Choice of law | Section 15.1 | | California, subject to the exception provided in Section 15.1of the | | | | | Area Development Agreement and applicable state law. See the | | | | | State Specific Addenda (Exhibit H) attached to this Disclosure | | | | | Document. |
| Section In Franchise | |||
|---|---|---|---|
| Agreement | |||
| (Exhibit A) and | |||
| in Remote | |||
| Kitchen |
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, if mediation does not resolve a dispute, binding arbitration will occur in Los Angeles, California. This applies to disputes arising from both the Area Development Agreement and the Franchise Agreement, including the Remote Kitchen Addendum. The fees and expenses of the arbitrator will be shared equally between the franchisee and Dog Haus, though this is subject to applicable state law.
This means that a Dog Haus franchisee, regardless of their location, may be required to travel to Los Angeles for arbitration if a dispute arises and cannot be settled through mediation. This could involve significant travel costs, legal fees, and other related expenses. The franchisee should also be aware of the choice of forum, which dictates that all proceedings will be held in Los Angeles County, California, as well as the choice of law, which specifies that California law governs the agreements, subject to certain exceptions and applicable state laws.
It is typical in franchising for the franchisor to specify a location for arbitration that is favorable to them, often their headquarters. Prospective Dog Haus franchisees should consider the potential costs and inconvenience associated with arbitrating in Los Angeles, California, and factor this into their decision-making process. They should also consult with a legal professional to understand their rights and obligations under the franchise agreement and any applicable state laws.