Who has the right to participate in Hydrodog arbitration proceedings arising under the franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
request by you or to withhold our approval of any action or omission by you. If we provide to you any waiver, approval, consent, or suggestion, or if we neglect or delay our response or deny any request for any of those, 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, both the franchisee and Hydrodog have the right to participate in arbitration proceedings. The FDD states that all disputes and controversies between the franchisee and Hydrodog are subject to resolution by arbitration. This includes allegations of fraud, misrepresentation, and violations of state or federal laws.
Prior to initiating arbitration, both parties are expected to engage in good faith negotiations to resolve the dispute. If these negotiations fail, either party can then invoke the arbitration clause. The party initiating the arbitration must provide written notice to the other party, detailing the specifics of the dispute. The recipient of this notice has 30 days to correct, settle, or compromise the dispute.
For franchisees purchasing a Hydrodog franchise in Washington, any arbitration or mediation will occur within the state of Washington or at a mutually agreed-upon location. Additionally, Section 21 of the Franchise Agreement, which includes the arbitration clause, is subject to the Washington Franchise Investment Protection Act, potentially superseding aspects of the agreement in that state.