Can Degree Wellness arbitration proceedings be consolidated with other arbitration proceedings?

According to Degree Wellness's 2025 Franchise Disclosure Document, any arbitration will be conducted on an individual basis. The agreement explicitly states that arbitrations cannot be conducted jointly or on a class-wide basis. Furthermore, the agreement specifies that arbitration proceedings will not be consolidated with any other arbitration proceeding.

This "no consolidation" clause means that a Degree Wellness franchisee cannot join their arbitration case with other franchisees who may have similar disputes with the franchisor. Each franchisee must pursue their claim independently. This can increase the cost and complexity for individual franchisees, as they must bear the full burden of legal expenses and preparation without the ability to share resources or strategies with others.

This type of clause is relatively common in franchise agreements. It is designed to protect the franchisor from large, coordinated legal actions. However, it can put franchisees at a disadvantage, especially if they have limited financial resources or lack experience with arbitration. Prospective franchisees should carefully consider this provision and understand its implications before signing the franchise agreement. They may want to seek legal counsel to discuss the potential risks and benefits of agreeing to such a clause.