Is mediation required before litigation for disputes related to the Hydrodog Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in | Summary |
|---|---|---|
| Franchise or Other Agreement | ||
| (u) Dispute resolution by arbitration or mediation | Sections 21.1 - 21.6 and 21.9 | Arbitration is required under the Franchise Agreement; except in situations in which we seek injunctive relief or seek to protect our intellectual property (Marks or Copyrights) or to enforce the non-compete or confidentiality obligations, Mediation is not required as a condition precedent to litigation. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, mediation is not required before litigation in most cases. The FDD outlines dispute resolution procedures in Section 21.1 - 21.6 and 21.9 of the Franchise Agreement. Arbitration is required, but mediation is not a condition precedent to litigation. However, there are exceptions where Hydrodog may seek injunctive relief or protect its intellectual property, such as trademarks or copyrights, or to enforce non-compete or confidentiality obligations. In these specific situations, Hydrodog is not obligated to participate in mediation before pursuing litigation.
This means that a franchisee may be required to participate in arbitration for disputes, but Hydrodog retains the right to immediately pursue litigation in certain cases without first attempting mediation. This could potentially put the franchisee at a disadvantage, as they may incur legal costs associated with litigation sooner than if mediation were required.
It is important for a prospective Hydrodog franchisee to understand the circumstances under which Hydrodog may bypass mediation and proceed directly to litigation, as this could impact the franchisee's legal strategy and costs in the event of a dispute. Franchisees should carefully review the relevant sections of the Franchise Agreement to fully understand their rights and obligations regarding dispute resolution.