Under what legal framework are Hydrodog arbitration issues governed?
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.
- 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, any disputes or controversies between Hydrodog and its franchisees, 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 the Franchise Agreement or the HydroDog Business, are subject to and will be resolved exclusively by arbitration.
The arbitration will be conducted according to the then-current commercial arbitration rules of the American Arbitration Association. This means that the specific procedures, guidelines, and standards set forth by the American Arbitration Association (AAA) for commercial disputes will govern the arbitration process. The AAA's rules cover aspects such as the selection of arbitrators, the exchange of information, the conduct of hearings, and the rendering of awards.
Before initiating arbitration, both parties are expected to engage in good faith negotiations to try and resolve the dispute. The party initiating the dispute must provide written notice detailing the issue, and the other party has 30 days to correct, settle, or compromise the dispute. This initial negotiation period is intended to encourage resolution without resorting to arbitration, potentially saving time and costs for both Hydrodog and the franchisee.
By agreeing to these terms, a prospective Hydrodog franchisee acknowledges that they are waiving their right to resolve disputes through traditional court proceedings and instead committing to a binding arbitration process governed by the AAA's commercial arbitration rules. This is a common practice in franchising, intended to provide a more streamlined and cost-effective dispute resolution mechanism.