Does the Degree Wellness agreement specify which party chooses the mediator for internal mediation?
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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the agreement does not specify which party chooses the mediator for internal mediation. Instead, it states that before either party can commence arbitration, they must attempt to resolve any dispute through internal mediation. This mediation is to be conducted in a "mutually agreeable location." If the parties cannot agree on a location within 10 days of a mediation request, the mediation will occur at Degree Wellness's corporate headquarters.
This arrangement implies that both the franchisee and Degree Wellness must agree on the location for internal mediation. If they cannot come to an agreement, the location defaults to Degree Wellness's corporate headquarters. This could potentially create a power imbalance, as the franchisee may feel pressured to accept the corporate headquarters as the location, even if it is inconvenient or costly for them to travel there.
Prospective franchisees should consider the implications of this clause. While internal mediation is intended to be a collaborative process, the default location at Degree Wellness's headquarters could give the franchisor an advantage. It would be prudent for potential franchisees to discuss this clause with Degree Wellness and perhaps negotiate for a more neutral or convenient location for both parties in the event of a dispute.