For Degree Wellness, where must disputes be arbitrated, according to the Development Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| s. | Modification of the agreement | Section 27 | Your Development Agreement may not be modified, except by a writing signed by both parties. |
| t. | Integration/merger clause | Section 27 | Only the terms of the Development Agreement and other related written agreements are binding (subject to applicable state law). Any representations or promises outside of the Disclosure Document and the Development Agreement may not be enforceable. Nothing in this Agreement or any related agreement is intended to disclaim the representations made in this Disclosure Document. |
| u. | Dispute resolution by arbitration or mediation | Sections 12 and 13, 15 | Except for certain claims, we and you must arbitrate all disputes in Duvall, Florida (subject to state law) before a single arbitrator with the American Arbitration Association. Except as we elect to enforce the Franchise Agreement or to seek temporary or permanent injunctive relief, before either party commences an arbitration, 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 may be submitted for arbitration. "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 dispute. |
| v. | Choice of forum | Section 15 | Duvall, Florida (subject to state law). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, disputes arising from the Development Agreement must be arbitrated in Duvall, Florida, subject to state law. This arbitration will be conducted before a single arbitrator affiliated with the American Arbitration Association.
However, before initiating arbitration, both Degree Wellness and the franchisee are required to attempt internal mediation. This involves reasonable business discussions, either by phone or in person, aimed at resolving the dispute. The mediation should occur at a mutually agreed location or, if no location is agreed upon within 10 days of a mediation request, at Degree Wellness's corporate headquarters.
Arbitration can only commence if internal mediation fails to produce a settlement or resolution within 30 days of a written mediation request. This process applies to all disputes except for specific claims where Degree Wellness seeks to enforce the Franchise Agreement or pursue temporary or permanent injunctive relief. This means that a franchisee may be required to travel to Florida to resolve disputes, which could increase costs.