Can the arbitrator award attorney's fees and costs in a Degree Wellness arbitration?

According to Degree Wellness's 2025 Franchise Disclosure Document, the arbitrator has the authority to award attorney's fees and costs. Specifically, the FDD states that the arbitrator can include in their award any relief deemed proper, including money damages, specific performance, injunctive relief, attorney's fees, and costs. This means that if a franchisee prevails in an arbitration against Degree Wellness, the arbitrator can order Degree Wellness to pay the franchisee's attorney's fees and costs. Conversely, if Degree Wellness prevails, the arbitrator can order the franchisee to cover Degree Wellness's legal expenses.

This provision is fairly standard in franchise agreements, as it allows the arbitrator to make the prevailing party whole. However, it also means that a franchisee could be responsible for significant legal fees if they lose the arbitration. The FDD also specifies that the arbitration proceedings will be conducted in Duvall County, Florida, under the American Arbitration Association's commercial arbitration rules, and before a single arbitrator.

It is important to note that the ability of the arbitrator to award attorney's fees and costs is not unlimited. The arbitrator must deem such an award to be proper under the circumstances. This gives the arbitrator some discretion in deciding whether to award attorney's fees and costs, and the amount of such an award. Prospective franchisees should carefully consider this provision and consult with an attorney to understand the potential risks and benefits of agreeing to arbitrate disputes with Degree Wellness.