Before commencing an arbitration, what internal mediation is required for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided in Section 14 of this Agreement, before either party commences an arbitration under this Section, the parties agree that, as a condition precedent to the filing or commencement of any arbitration, they will attempt to resolve any dispute through internal mediation between the parties to be conducted in a mutually agreeable location or, if no such location is agreed upon within 10 days after a request for mediation, then at our corporate headquarters.
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, before either party can start an arbitration, they must first attempt to resolve the dispute through internal mediation. This mediation should occur in a location agreed upon by both parties. However, if an agreement on location cannot be reached within 10 days of a mediation request, the mediation will take place at Degree Wellness's corporate headquarters.
The internal mediation process must occur before filing or starting any arbitration, unless Degree Wellness chooses to enforce the agreement or seek temporary or permanent injunctive relief as provided in Section 14 of the agreement. If internal mediation does not lead to a settlement or resolution within 30 days after a written request for mediation, the dispute can then be submitted for arbitration.
The internal mediation involves reasonable business discussions between the parties, either by telephone or in person, to discuss the dispute and find ways to resolve it. This process is a condition that must be met before moving forward with arbitration, aiming to encourage resolution before resorting to a more formal and potentially costly process.