Are arbitrators allowed to modify the terms of the Hydrodog franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 21 of the Franchise Agreement will be subject to the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, the FDD does not explicitly state whether arbitrators have the authority to modify the terms of the franchise agreement. However, it does state that Section 21 of the Franchise Agreement will be subject to the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. Additionally, RCW 19.100.180 may supersede the franchise agreement in the franchisee's relationship with the franchisor, including areas of termination and renewal. Court decisions may also supersede the franchise agreement in these areas.
For franchisees purchasing in Washington, any arbitration or mediation will occur either in Washington state or a mutually agreed-upon location at the time of arbitration. This suggests that while the agreement itself may not explicitly grant arbitrators the power to modify terms, state laws and court decisions could potentially override aspects of the agreement.
Prospective franchisees should seek clarification from Hydrodog regarding the specific circumstances under which an arbitrator or mediator can alter the franchise agreement, especially in light of state laws and potential court decisions that may take precedence over certain contractual terms. Understanding these conditions is crucial for assessing the potential flexibility and legal recourse available during the franchise term.