Who shares the fees and expenses of the arbitrator in a Dog Haus dispute?
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, both the franchisee and franchisor share the fees and expenses of the arbitrator equally. Specifically, if mediation does not resolve a dispute, unresolved claims will be submitted to binding arbitration in Los Angeles, California. This applies to disputes arising from the Development Agreement and the Franchise Agreement, including the Remote Kitchen Addendum.
This arrangement means that a franchisee will be responsible for half of the arbitrator's fees, which can potentially be a significant expense depending on the complexity and length of the arbitration process. It is a standard practice in franchising for both parties to share arbitration costs, as it ensures neither party is unduly burdened by the expense and promotes a more equitable resolution process.
Prospective Dog Haus franchisees should be aware of this cost-sharing arrangement and factor it into their financial planning. While arbitration aims to provide a quicker and less expensive alternative to litigation, it still involves costs that franchisees need to be prepared to cover. It is advisable to consult with a legal professional to understand the full implications of the dispute resolution process and potential costs involved.