What happens if the parties are unable to settle the dispute or controversy related to the Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
, we will not be deemed to have made any warranties or guarantees which you may rely on, and will not assume any liability or obligation to you.
21. DISPUTE RESOLUTION.
- 21.1 Agreement to Arbitrate. You and we acknowledge that resolving disputes prior to commencing arbitration hearings or court proceedings is in the best interests of both parties, all other franchisees and our System. Therefore, the parties agree that they will seek to settle any dispute between them through good faith negotiations prior to arbitration. However, if the parties are unable to settle the dispute or controversy, then except as expressly provided to the contrary in this Agreement, all disputes and controversies between you and we, including allegations of fraud, misrepresentation and violation of any state or federal laws, rules or regulations, arising under, as a result of, or in connection with this Agreement or the HydroDog Business are subject to and will be resolved exclusively by arbitration conducted according to the then current commercial arbitration rules of the American Arbitration Association.
- 21.2 Notice of Dispute. The party alleging the dispute must provide the other party with written notice setting forth the alleged dispute in detail. The party who receives written notice alleging the dispute will have thirty (30) days after receipt of the written notice to correct, settle or compromise the dispute specified in the written notice. If the written notice alleges that the Franchisee is delinquent in the payment of any fees or other payments payable to us, the Franchisee will have ten (10) days to make full payment (including interest and Administrative Fees as provided for herein) to us.
- 21.3 Demand for Arbitration. If the dispute alleged by either party has not been corrected, settled or compromised within the time period provided for in this Agreement, then either party may demand arbitration in accordance with the Code of Procedure of the American Arbitration Association. Unless agreed otherwise by the parties, three Arbitrators will be selected to hear the matter, one of which must be a retired judge. You and we will each fully perform their obligations under this Agreement during the entire arbitration process.
- 21.4 Venue and Jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if good faith negotiations fail to resolve a dispute, the matter will be settled through arbitration. Except when explicitly stated otherwise in the agreement, all disputes, including those involving fraud, misrepresentation, or violations of state or federal laws, will be resolved through arbitration following the commercial arbitration rules of the American Arbitration Association.
Before initiating arbitration, the party claiming a dispute must provide a detailed written notice to the other party. The recipient then has thirty days to correct, settle, or compromise the dispute. However, if the dispute involves the franchisee's failure to pay fees, the franchisee only has ten days to make full payment, including interest and administrative fees.
If the dispute remains unresolved after the allotted time, either party can demand arbitration according to the American Arbitration Association's procedures. Unless both parties agree otherwise, a panel of three arbitrators, including a retired judge, will hear the case. Both the franchisee and Hydrodog must continue to fulfill their obligations under the franchise agreement throughout the arbitration process. All arbitration hearings will be held in Hillsborough County, Florida, or another location designated by Hydrodog, and must occur within ninety days after the arbitrators are selected. The arbitrators' authority is limited to interpreting and ensuring adherence to the written provisions of the agreement.