In a Degree Wellness arbitration, can the arbitrator limit discovery to the greatest extent possible?

According to Degree Wellness's 2025 Franchise Disclosure Document, the arbitrator in an arbitration proceeding has the authority to limit discovery to the greatest extent possible, provided it remains consistent with basic fairness. The document specifies that initial discovery is limited to three depositions totaling 12 hours, six interrogatories each with no more than 12 questions (without subparts), and three document requests for each side.

This clause means that a prospective Degree Wellness franchisee facing a dispute that goes to arbitration may have limited means to gather information from Degree Wellness or other relevant parties. The arbitrator's discretion to further limit discovery could potentially restrict the franchisee's ability to build a strong case, as they may not be able to obtain all the necessary documents or depose key witnesses.

However, the inclusion of 'basic fairness' as a condition suggests that the arbitrator cannot impose overly restrictive limitations that would prejudice either party. This provision aims to balance the need for efficient and cost-effective arbitration with the right of each party to present their case adequately. Franchisees should be aware of these limitations and consider the potential impact on their ability to pursue or defend against claims in arbitration.

It is common in franchise agreements to include arbitration clauses that limit discovery to some extent, as arbitration is often intended to be a faster and less expensive alternative to litigation. However, the degree of limitation can vary, and prospective franchisees should carefully review these provisions to understand their rights and obligations in the event of a dispute with Degree Wellness.