Are the arbitrators' decisions limited to the issues raised in the written demand for arbitration regarding the Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The authority of the Arbitrators will be limited to making a finding, judgment, decision and award relating to the interpretation of or adherence to the written provisions of this Agreement.
All findings, judgments, decisions and awards of the Arbitrators will be limited to the dispute set forth in the written demand for arbitration, and the Arbitrators will have no authority to decide any other issues.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the arbitrators' authority is explicitly limited to the disputes outlined in the written demand for arbitration. This means the arbitrators can only make findings, judgments, decisions, and awards that relate directly to the interpretation or adherence to the written provisions of the franchise agreement. They cannot consider or rule on any issues that are not specifically included in the initial written demand for arbitration.
This limitation ensures that the arbitration process remains focused and efficient, preventing the scope of the dispute from expanding beyond what was originally presented by the parties involved. It also means that any claims or issues a franchisee wants to raise during arbitration must be clearly and comprehensively detailed in the written demand to be considered.
For a prospective Hydrodog franchisee, this underscores the importance of carefully drafting the written demand for arbitration. It is crucial to include all relevant issues and claims in the initial notice, as the arbitrators will not have the authority to address anything beyond what is stated in that document. This requirement emphasizes the need for franchisees to seek legal counsel to ensure their demand is thorough and covers all potential areas of dispute.