What is the role of the Arbitrator regarding the Budget submitted by the franchisee in a Zoomin Groomin arbitration?
Zoomin_Groomin Franchise · 2025 FDDAnswer 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 dispute cannot be resolved through mediation, it must be submitted to binding arbitration. As part of this process, the franchisee's attorney must include an estimate for legal fees, referred to as a "Budget," in their demand for arbitration. This budget should detail the anticipated costs for witnesses, experts, and document preparation necessary to establish liability and damages.
The arbitrator plays a crucial role in evaluating the proportionality of this budget relative to the potential recovery (the "Cure") sought by the franchisee. Before any discovery or hearings can take place, the arbitrator must approve the initial budget. This means the arbitrator assesses whether the projected legal expenses are reasonable in the context of what the franchisee hopes to gain from the arbitration.
Furthermore, any subsequent increases to the budget also require the arbitrator's approval. This ongoing oversight ensures that legal costs remain proportional throughout the arbitration process. This requirement protects both the franchisee and Zoomin Groomin from excessive or unnecessary legal spending during the arbitration.