Is arbitration required for all actions arising out of the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that no settlement or resolution between the parties can be reached through internal mediation within thirty (30) days following the date on which a written request for internal mediation is made by any party, such dispute shall be submitted for arbitration pursuant to this Section. "Internal mediation" shall consist of, among other things, the parties having reasonable business discussions, whether by telephone or in person, concerning the dispute and means of resolving the same.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if internal mediation does not resolve a dispute within 30 days after a written request, the dispute must be submitted for arbitration. Internal mediation involves business discussions between the parties to find a resolution. This initial step is required before moving to arbitration.
This means that if a Degree Wellness franchisee has a dispute with the franchisor, they must first attempt to resolve it through internal mediation. This involves having business discussions, either by phone or in person, to try and find a solution. Only if this process fails to produce a resolution within 30 days can the dispute then be submitted to arbitration.
For a prospective Degree Wellness franchisee, this indicates that disputes will initially be handled internally through mediation before escalating to arbitration. This could potentially save time and money compared to immediately entering arbitration or litigation. However, if mediation fails, franchisees are obligated to proceed with arbitration, which may limit their options for resolving the dispute in other forums, such as court.