In a Degree Wellness arbitration, can the arbitrator award interest on unpaid amounts?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator shall have the right to award or include in his award any relief that he or she deems proper in the circumstances, including without limitation, money damages (with interest on unpaid amounts from date due), specific performance, injunctive relief (including permanent, temporary, and preliminary injunctive relief), attorneys' fees, and costs. The award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement, and judgment on the award may be entered in any court of competent jurisdiction, and each such party waives any right to contest the validity or enforceability of such award.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, in an arbitration proceeding, the arbitrator has the authority to award interest on unpaid amounts from the date they were originally due. This means that if a franchisee is found to owe Degree Wellness money, the arbitrator can include in the award an additional amount to compensate for the delay in payment.
This provision is significant for prospective Degree Wellness franchisees because it clarifies the potential financial consequences of failing to meet payment obligations. It is not uncommon in franchise agreements for interest to be charged on overdue amounts, as it serves as an incentive for timely payments and compensates the franchisor for the time value of money and any associated collection costs.
Furthermore, the arbitrator can also award money damages, specific performance, injunctive relief, attorney's fees, and costs. The arbitrator's decision is binding, and judgment on the award can be entered in any court with jurisdiction, meaning both parties waive the right to contest the award's validity or enforceability.