Are there any exceptions to the waiver of punitive damages in the Hydrodog franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, the document does not provide specific information regarding exceptions to the waiver of punitive damages. While Item 23 discusses dispute resolution and liquidated damages, it does not explicitly address whether punitive damages are waivable or if there are exceptions to such a waiver.
However, the document does mention dispute resolution through arbitration, stating that all disputes and controversies between the franchisee and Hydrodog are subject to arbitration, except as expressly provided to the contrary in the agreement. This suggests that the franchise agreement may contain clauses that address specific exceptions related to dispute resolution and potential waivers.
Prospective Hydrodog franchisees should carefully review the entire franchise agreement, including any addenda or exhibits, and consult with a legal professional to fully understand their rights and obligations regarding dispute resolution and potential waivers of punitive damages. It is important to clarify with Hydrodog under what circumstances, if any, punitive damages might still be applicable despite the general arbitration agreement.