Does the Degree Wellness agreement address the admissibility of statements made during internal mediation in subsequent legal proceedings?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided in Section 14 of this Agreement, before either party commences an arbitration under this Section, the parties agree that, as a condition precedent to the filing or commencement of any arbitration, they will attempt to resolve any dispute through internal mediation between the parties to be conducted in a mutually agreeable location or, if no such location is agreed upon within 10 days after a request for mediation, then at our corporate headquarters.
In the event that no settlement or resolution between the parties can be reached through internal mediation within thirty (30) days following the date on which a written request for internal mediation is made by any party, such dispute shall be submitted for arbitration pursuant to this Section. "Internal mediation" shall consist of, among other things, the parties having reasonable business discussions, whether by telephone or in person, concerning the dispute and means of resolving the same.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Degree Wellness franchise agreement outlines a process for internal mediation prior to arbitration but does not explicitly address whether statements made during internal mediation are admissible in subsequent legal proceedings.
According to the agreement, before commencing arbitration, both Degree Wellness and the franchisee must attempt to resolve any dispute through internal mediation. This mediation involves reasonable business discussions, either by telephone or in person, to find a resolution. If no resolution is reached within thirty days of a written request for internal mediation, the dispute will then be submitted for arbitration.
Because the FDD does not specify whether statements made during mediation are admissible in later proceedings, a prospective Degree Wellness franchisee should seek clarification from the franchisor on this point. Understanding the confidentiality and admissibility of statements made during mediation is crucial for informed decision-making during dispute resolution.