What dispute resolution procedures can third-party beneficiaries of the Degree Wellness franchise agreement utilize?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's officers, directors, shareholders, agents and/or employees are express third party beneficiaries of this Agreement and the dispute resolution procedures contained herein, including without limitation, the right to specifically utilize and exhaust the mediation procedure with respect to any and all claims asserted against such person(s) by Developer or its principals.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the franchisor's officers, directors, shareholders, agents, and/or employees are considered express third-party beneficiaries of the franchise agreement. This means they have specific rights and can utilize the dispute resolution procedures outlined in the agreement.
Specifically, these third-party beneficiaries have the right to use and exhaust the mediation procedure regarding any claims asserted against them by the Degree Wellness developer or its principals. Mediation is a process where a neutral third party helps facilitate a resolution between disputing parties.
This clause ensures that Degree Wellness's leadership and staff have a mechanism to resolve disputes with developers through mediation, potentially avoiding costly and time-consuming litigation. It is important for prospective franchisees to understand that this clause exists to protect specific individuals associated with the franchisor in the event of a dispute.