What dispute resolution procedures can third-party beneficiaries of the Degree Wellness agreement utilize?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
Based on the 2025 Franchise Disclosure Document, the Degree Wellness franchise agreement outlines dispute resolution procedures primarily for the parties directly involved in the agreement, namely the franchisor and the franchisee. The document specifies a process of internal mediation, requiring both parties to engage in reasonable business discussions to attempt to resolve disputes within thirty days of a written request for mediation. If internal mediation fails, the dispute is then submitted for arbitration.
However, the FDD does not explicitly detail whether or how these dispute resolution procedures extend to third-party beneficiaries of the Degree Wellness agreement. While third parties, such as software or service providers contracted by Degree Wellness, may be mentioned in the context of providing services to the franchisee, their ability to directly utilize the outlined mediation and arbitration processes is not addressed. The agreement does mention that franchisees may be required to sign a service agreement with these third-party providers, which could include its own dispute resolution mechanisms.
Therefore, a prospective Degree Wellness franchisee should seek clarification from the franchisor regarding the rights and dispute resolution options available to third-party beneficiaries under the franchise agreement. Specifically, it would be prudent to inquire whether third-party service agreements contain provisions for dispute resolution and how those provisions interact with the broader franchise agreement.