Is the arbitrator's award and decision in a Degree Wellness arbitration binding?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator shall have the right to award or include in his award any relief that he or she deems proper in the circumstances, including without limitation, money damages (with interest on unpaid amounts from date due), specific performance, injunctive relief (including permanent, temporary, and preliminary injunctive relief), attorneys' fees, and costs. The award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement, and judgment on the award may be entered in any court of competent jurisdiction, and each such party waives any right to contest the validity or enforceability of such award.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the arbitrator's award and decision are binding. Specifically, the FDD states that the arbitrator's decision is considered conclusive and binding on all parties involved in the agreement.
This means that if a dispute arises between a Degree Wellness franchisee and the franchisor, and the matter proceeds to arbitration, the arbitrator's ruling will be legally enforceable. Judgment on the award may be entered in any court of competent jurisdiction. Both parties waive their rights to contest the validity or enforceability of the arbitrator's decision.
This clause is fairly standard in franchise agreements, as arbitration is designed to be a quicker and less expensive alternative to litigation. However, franchisees should understand that agreeing to binding arbitration means they are giving up their right to a trial in court and that appealing an arbitrator's decision is very difficult.