Can the arbitrator further limit discovery in a Degree Wellness arbitration?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Discovery under the arbitration will be limited to the following for each side: (i) three depositions totaling 12 hours; (ii) six interrogatories each consisting of no more than 12 questions (with no subparts); and (iii) three document requests.
The discovery may also be limited in any other manner as specified by the arbitrator, who will limit discovery to the greatest extent possible consistent with basic fairness.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the arbitrator has the authority to further limit discovery during arbitration. The document specifies initial discovery limitations for each side, including a maximum of three depositions totaling 12 hours, six interrogatories with no more than 12 questions each, and three document requests.
However, the FDD also states that the arbitrator can limit discovery in other ways, provided it is consistent with basic fairness. This clause grants the arbitrator broad discretion to manage the discovery process, potentially reducing the scope of discovery beyond the initial limitations.
For a prospective Degree Wellness franchisee, this means that the amount of information they can obtain from Degree Wellness during an arbitration could be significantly restricted at the arbitrator's discretion. This could impact their ability to build a strong case, so understanding the potential limitations on discovery is crucial before entering into a franchise agreement.