Can Hydrodog disclose information from arbitration in a subsequent court hearing?

According to Hydrodog's 2025 Franchise Disclosure Document, either party involved in an arbitration proceeding is permitted to disclose or utilize information presented during the arbitration in a subsequent court hearing. This applies to hearings brought by either the franchisee or Hydrodog, provided the court hearing is pursuant to the franchise agreement. This means that information shared or evidence presented during arbitration is not strictly confidential and can be used in court if further legal action is taken related to the agreement.

This clause has important implications for prospective Hydrodog franchisees. It means that franchisees should be aware that any information they disclose during arbitration could potentially be used against them in a later court hearing. This could include sensitive business information, financial data, or details about disputes with Hydrodog. Franchisees should therefore be cautious about what information they share during arbitration and should consult with an attorney to understand the potential risks.

In practice, this clause aims to ensure transparency and prevent parties from concealing information that could be relevant in a court of law. It allows both Hydrodog and the franchisee to present a complete picture of the dispute, even if it involves information that was initially discussed in a private arbitration setting. While arbitration is intended to be a more informal and efficient means of dispute resolution, this provision acknowledges that it may not always be the final step and that court intervention may still be necessary.