Does the restriction on releases apply to arbitration before an independent arbitrator for Dog Haus franchisees in Indiana?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- e.
Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by Indiana law or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee.
This paragraph does not apply to arbitration before an independent arbitrator.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the restriction on releases does not apply to arbitration before an independent arbitrator for Dog Haus franchisees in Indiana. Specifically, Indiana law generally prohibits franchise agreements from requiring franchisees to prospectively assent to releases that relieve any person from liability imposed by Indiana law. It also restricts requiring franchisees to refer controversies to any person if that referral would be binding on the franchisee.
However, the FDD explicitly states that this restriction does not apply to arbitration before an independent arbitrator. This means that Dog Haus franchisees in Indiana can agree to resolve disputes through arbitration with an independent arbitrator without violating these specific Indiana regulations.
This exception allows Dog Haus to utilize arbitration as a dispute resolution method in Indiana, provided the arbitrator is independent. Franchisees should ensure they understand the implications of agreeing to arbitration, including the potential waiver of certain legal rights, but this clause clarifies that such agreements are permissible under Indiana law when an independent arbitrator is involved.