Does the Degree Wellness arbitration agreement apply to disputes regarding any specification, standard, or operating procedure?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If any lawful requirement or court order of any jurisdiction (1) requires a greater advance notice of the termination or non-renewal of this Agreement than is required under this Agreement, or the taking of some other action which is not required by this Agreement, or (2) makes any provision of this Agreement or any specification, program, standard, or operating procedure we prescribed invalid or unenforceable, then the advance notice and/or other action required or revision of the specification,
program, standard, or operating procedure will be substituted for the comparable provisions of this Agreement in order to make the modified provisions enforceable to the greatest extent possible. You agree to be bound by the modification to the greatest extent lawfully permitted.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document, the franchise agreement includes provisions addressing situations where a court order or lawful requirement invalidates any specification, program, standard, or operating procedure.
Specifically, if any specification, program, standard, or operating procedure prescribed by Degree Wellness is deemed invalid or unenforceable due to a lawful requirement or court order, then a revision of the specification, program, standard, or operating procedure will be substituted for the comparable provisions of the agreement. The franchisee agrees to be bound by this modification to the greatest extent lawfully permitted.
While this clause outlines a process for modifying the agreement in response to legal or regulatory changes, it does not explicitly state that disputes regarding specifications, standards, or operating procedures are subject to binding arbitration. However, the document does state that the Development Agreement is subject to binding arbitration; therefore, it is important to carefully review the specific terms of the franchise agreement and any related documents to fully understand the scope of the arbitration clause and its implications for dispute resolution.