Can Degree Wellness arbitration proceedings be conducted on a class-wide basis?

According to Degree Wellness's 2025 Franchise Disclosure Document, arbitration proceedings cannot be conducted on a class-wide basis. The FDD explicitly states that any arbitration between Degree Wellness and a franchisee will be conducted on an individual basis. This means a franchisee cannot join with other franchisees to pursue a single, consolidated arbitration claim against Degree Wellness.

This clause prevents franchisees from forming a class action or consolidating their claims into a single arbitration proceeding. This is a common practice in franchising, as franchisors often prefer to handle disputes on an individual basis. It can be more efficient and less costly for Degree Wellness to manage individual arbitrations rather than a large, consolidated case.

For a prospective Degree Wellness franchisee, this means that if they have a dispute with the franchisor that leads to arbitration, they must pursue the claim independently. They cannot rely on the resources or shared costs of a class action. This could potentially increase the financial burden on the franchisee, as they will be solely responsible for their legal fees and costs associated with the arbitration.

It is important for a potential Degree Wellness franchisee to understand this limitation on class actions and consolidation, as it could impact their ability to seek redress in case of a dispute with the franchisor. Franchisees should factor this into their decision-making process and consider the potential costs and risks associated with individual arbitration.