Is class action or consolidation allowed in Degree Wellness arbitrations?

According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are prohibited from participating in class action lawsuits or consolidating claims in arbitration. The FDD explicitly states that any arbitration must be conducted on an individual basis, preventing joint or class-wide actions. This means each franchisee must pursue their claims independently.

This clause has significant implications for prospective Degree Wellness franchisees. It prevents franchisees from joining together to pursue claims against Degree Wellness, even if they have similar grievances. This can make it more difficult and expensive for franchisees to pursue legal action, as they must bear the full cost of arbitration themselves. Without the ability to pool resources, franchisees may be less likely to challenge Degree Wellness's actions, even if they believe they have a valid claim.

While individual arbitration can offer a quicker and more cost-effective resolution compared to traditional litigation, the prohibition of class actions and consolidated claims significantly favors Degree Wellness. Franchisees should carefully consider this provision and its potential impact on their ability to seek redress in case of disputes. It is advisable to consult with an attorney to fully understand the implications of this clause before investing in a Degree Wellness franchise.