Does the Degree Wellness arbitration agreement apply to disputes involving the relationship between the parties?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
13. ARBITRATION.
- a. Agreement to Arbitrate. Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided above, all controversies, disputes or claims arising between us, our affiliates, and our and their respective owners, officers, directors, agents, and employees (in their representative capacity) and you (and your Principal Owners and guarantors) arising out of or related to: (1) this Agreement, any provision thereof, or any related agreement (except for any lease or sublease with us or any of our affiliates); (2) the relationship of the parties hereto; (3) the validity of this Agreement or any related agreement, or any provision thereof; or (4) any specification, standard or operating procedure relating to the establishment or operation of the Franchise, shall be submitted for arbitration to be administered by the office of the American Arbitration Association.
- b. Place and Procedure. Such arbitration proceedings shall be conducted in Duvall County, Florida, and, except as otherwise provided in this Agreement, shall be conducted in accordance with then current commercial arbitration rules of the American Arbitration Association, and the arbitration hearing
shall be conducted before a single arbitrator, not a panel.
- c.
Costs of Arbitration.
You and we acknowledge and agree that neither party shall be permitted to bring or maintain any actions, claims or counter-claims against the other party in any arbitration proceeding unless the party asserting such action, claim or counterclaim timely pays all costs and fees charged to it by the American Arbitration Association and one-half of all charges and fees of the designated arbitrator for the proceeding, as and when billed.
In the event a party fails to pay all costs and fees charged to it by the American Arbitration Association and one-half of all charges and fees of the designated arbitrator for the proceeding, as and when billed, the arbitrator is directed to dismiss any actions, claims or counter-claims brought by such party in the arbitration.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the arbitration agreement does apply to disputes involving the relationship between the parties.
The FDD states that controversies, disputes, or claims arising between Degree Wellness, its affiliates, and their respective owners, officers, directors, agents, and employees, and the franchisee (including principal owners and guarantors) that arise out of or are related to the relationship of the parties are subject to arbitration. This means that any disagreements or issues that come up as a result of the franchise relationship will be resolved through arbitration rather than through the court system, except for actions where Degree Wellness seeks to enforce the agreement or pursue injunctive relief.
The arbitration proceedings will take place in Duvall County, Florida, and will follow the American Arbitration Association's commercial arbitration rules. A single arbitrator, rather than a panel, will preside over the hearing. Both Degree Wellness and the franchisee are responsible for paying their respective costs and fees associated with the arbitration, including fees charged by the American Arbitration Association and half of the arbitrator's fees. Failure to pay these costs can result in dismissal of claims or counterclaims.
This mandatory arbitration clause means that franchisees waive their right to sue Degree Wellness in court over most disputes. Franchisees should carefully consider the implications of agreeing to arbitration, including the location of the arbitration (Duvall County, Florida), the cost-sharing arrangement, and the limited scope for appealing an arbitrator's decision.