factual

Does the Hydrodog franchise agreement allow third parties to join arbitration proceedings?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 21.15 Private Disputes. Any dispute and any litigation arising out of or related to this Agreement, the relationship of the parties, or the franchise business, will be conducted and resolved on an individual basis only and not a class-wide, multiple plaintiff or similar basis.

Any such proceeding will not be consolidated with any other proceeding involving any other person, except for disputes involving affiliates of the parties.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

Based on the 2025 Hydrodog Franchise Disclosure Document, disputes and litigation will be conducted and resolved on an individual basis only and not a class-wide, multiple plaintiff, or similar basis. Any such proceeding will not be consolidated with any other proceeding involving any other person, except for disputes involving affiliates of the parties. This means that franchisees are restricted from combining their disputes with others, except in cases involving affiliates of either the franchisee or Hydrodog.

This clause ensures that each franchisee's dispute is handled separately, preventing class action lawsuits or similar consolidated proceedings. This can be beneficial for Hydrodog, as it limits their exposure to large, multi-claimant lawsuits. However, it may disadvantage franchisees who have similar grievances, as they cannot pool resources or present a unified front.

For a prospective Hydrodog franchisee, this means that if you have a dispute with the franchisor, you will need to pursue it independently, which may increase your legal costs. It also means that you cannot rely on the experiences or legal strategies of other franchisees in your case, unless they are affiliates. This is a fairly standard clause in franchise agreements, designed to manage risk and prevent large-scale litigation against the franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.