What is the confidentiality requirement regarding evidence and decisions pertaining to any Hydrodog arbitration hearing?
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.
The Federal Rules of Evidence (the "Rules") will apply to all arbitration hearings and the introduction of all evidence, testimony, records, affidavits, documents and memoranda in any arbitration hearing must comply in all respects with the Rules and legal precedents interpreting the Rules.
Both parties will have the absolute right to cross-examine any person who testified against them or in favor of the other party.
The Arbitrators will have no authority to add to, delete or modify in any manner the terms and 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.
The Arbitrators will not have the right or authority to award punitive damages to either us or you, or any of our or your officers, directors, Owners and the Personal Guarantors.
Both parties, including their officers, directors, Owners and the Personal Guarantors, expressly waive their rights to plead or seek punitive damages.
All findings, judgments, decisions and
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, while the document outlines dispute resolution through arbitration, it does not explicitly detail confidentiality requirements related to evidence or decisions made during arbitration hearings. The FDD mentions the application of the Federal Rules of Evidence and the arbitrator's authority, but it does not specify whether the proceedings, evidence presented, or final decisions are to be kept confidential.
For a prospective Hydrodog franchisee, this lack of clarity means that the default rules of the American Arbitration Association (AAA), which govern the arbitration, would likely apply regarding confidentiality. However, it remains unclear whether Hydrodog has any specific requirements or exceptions beyond those standard rules. This could be significant, as franchisees might prefer certain information shared during arbitration, such as trade secrets or business strategies, to remain private.
Therefore, it is crucial for potential Hydrodog franchisees to seek clarification from the franchisor regarding the confidentiality of arbitration proceedings. Specifically, they should inquire whether there are any additional confidentiality clauses or agreements that would apply, and what measures are in place to protect sensitive information disclosed during arbitration. Understanding these aspects is essential for making an informed decision about investing in a Hydrodog franchise.