Under what circumstances is arbitration required for dispute resolution in the Hydrodog Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in | Summary |
|---|---|---|
| (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. |
| (v) Choice of forum | Section 21.4 | Arbitration in Hillsborough County, Florida (subject to applicable state law). |
| (w) | Section 21.12 | Florida law applies (subject to applicable state |
| Choice of law | law). |
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, arbitration is generally required for dispute resolution under the Franchise Agreement. However, there are specific exceptions to this rule. Hydrodog is not required to engage in arbitration in situations where it seeks injunctive relief, which is a court order to stop someone from doing something, or when it needs to protect its intellectual property, such as its trademarks (Marks) or Copyrights. Additionally, Hydrodog is not required to arbitrate disputes related to the enforcement of non-compete or confidentiality obligations. Mediation is not required before starting litigation.
For a prospective Hydrodog franchisee, this means that most disputes will be resolved through arbitration, which is generally a less formal and less expensive process than going to court. However, franchisees should be aware that Hydrodog retains the right to pursue legal action in court under certain circumstances, particularly when it comes to protecting its brand and business interests.
The arbitration will take place in Hillsborough County, Florida, and Florida law governs the Franchise Agreement, although this is subject to applicable state law. Franchisees should consult with an attorney to understand the implications of these provisions and how they may be affected by the laws of their own state.