What is the condition precedent to filing or commencement of any arbitration against 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 17.8 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 commencing arbitration, both parties must first attempt to resolve any dispute through internal mediation. This mediation should occur between the parties and be conducted at a mutually agreed-upon location. If no location is agreed upon within 10 days of a mediation request, the mediation will take place at Degree Wellness's corporate headquarters.
Internal mediation involves reasonable business discussions, either by phone or in person, to explore ways to resolve the dispute. If no resolution is reached within 30 days following the initial written request for internal mediation, either party can then proceed to arbitration.
However, Degree Wellness retains the right to enforce the agreement or seek temporary or permanent injunctive relief without undergoing internal mediation first. This exception allows Degree Wellness to take immediate legal action to protect its interests under certain circumstances, such as breaches of contract or intellectual property infringement, without being delayed by the mediation requirement. This clause ensures Degree Wellness can act swiftly to prevent potential harm to its brand or business operations.