factual

What must a Zoomin Groomin franchisee's attorney include in the demand for arbitration?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

Your attorney must include in your demand for arbitration an estimate for legal fees ("Budget") necessary to establish liability and damages. The Budget will include the maximum number of: a) witness, b) experts and c) documents. The Arbitrator will evaluate the Budget for proportionality to the Cure. The Budget must be approved by the Arbitrator, before conducting any discovery, or hearings. The Arbitrator must approve any increases in the Budget.

Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to the 2025 Zoomin Groomin Franchise Disclosure Document, if a franchisee cannot resolve a matter through mediation and proceeds to arbitration, their attorney must include specific information in the demand for arbitration. This includes an estimate for legal fees, referred to as a "Budget," which is necessary to establish liability and damages.

The Budget must specify the maximum number of witnesses, experts, and documents anticipated for the arbitration process. The arbitrator will then evaluate this Budget to ensure it is proportional to the potential resolution or "Cure" being sought.

Before any discovery or hearings can take place, the arbitrator must approve the initial Budget. Furthermore, any increases to the Budget also require the arbitrator's approval. This process ensures cost control and proportionality in the arbitration proceedings for Zoomin Groomin franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.