What disputes between a Hydrodog franchisee and franchisor are specifically excluded from arbitration?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.6 Disputes Not Subject to Arbitration.
Notwithstanding anything to the contrary in this Agreement, the following disputes between you and us will not be subject to arbitration: (a) your or your owners', employees', officers', directors' or agents' use of the Marks or Copyrights; (b) your obligations upon termination or expiration of this Agreement; and (c) your or your owners', officers', directors', employees' or agents' violation of the provisions of this Agreement relating to confidentiality and the covenants not to compete.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, certain disputes between the franchisee and franchisor are explicitly excluded from mandatory arbitration. This means that, unlike most disagreements which must go through arbitration, these specific issues can be taken directly to court.
The three types of disputes that Hydrodog does not require to be arbitrated are: disputes regarding the franchisee's or their personnel's use of Hydrodog's trademarks or copyrights, disputes concerning the franchisee's obligations after the franchise agreement terminates or expires, and disputes arising from a franchisee's or their personnel's violation of the franchise agreement's confidentiality and non-compete clauses.
This is an important consideration for potential Hydrodog franchisees. While arbitration is often seen as a faster and less expensive alternative to litigation, it may not be the preferred route for all types of disputes. Understanding which issues are excluded from arbitration allows a franchisee to assess the potential risks and costs associated with each type of disagreement and to make informed decisions about how to protect their interests.