Does the Degree Wellness franchise agreement allow for class action or consolidated arbitration?

Based on the 2025 Degree Wellness Franchise Disclosure Document, the Development Agreement includes a notice that the agreement is subject to binding arbitration, as stated in Section 17.9. However, the document does not explicitly state whether the franchise agreement allows for class action or consolidated arbitration.

Because the excerpt mentions binding arbitration, it is important for a prospective franchisee to understand what this entails. Binding arbitration means that any disputes arising from the franchise agreement must be resolved through an arbitration process, where a neutral third party makes a decision that is legally binding on both Degree Wellness and the franchisee. This process typically bypasses the court system, offering a potentially faster and more cost-effective resolution.

Since the document does not specify whether class action or consolidated arbitration is permitted, it is essential that a prospective Degree Wellness franchisee clarify this point with the franchisor. Understanding whether franchisees can participate in class actions or consolidate their claims in arbitration can significantly impact their legal rights and options in case of a dispute. A potential franchisee should seek legal counsel to fully understand the implications of the arbitration clause and its limitations.