Does the Degree Wellness agreement specify which party is responsible for the costs of 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 17.8 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)
The 2025 Degree Wellness Franchise Disclosure Document does not specify which party is responsible for the costs of internal mediation. However, the document does state that before either party commences an arbitration, they will attempt to resolve any dispute through internal mediation. This mediation will occur between the parties and be conducted in a mutually agreeable location, or at Degree Wellness's corporate headquarters if a location cannot be agreed upon within 10 days of a mediation request.
Internal mediation, according to the FDD, involves the parties having reasonable business discussions, whether by telephone or in person, concerning the dispute and means of resolving it. If a settlement or resolution cannot be reached within 30 days of a written request for internal mediation, the dispute will then be submitted for arbitration.
While the FDD outlines the process for internal mediation and subsequent arbitration, it remains silent on the allocation of costs associated with the internal mediation process itself. A prospective franchisee should clarify with Degree Wellness who bears the costs of internal mediation, such as travel expenses or any fees for external mediators if the parties choose to involve one.