Does the Degree Wellness franchise agreement include a waiver of class actions?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement includes a waiver of class actions. This means that any legal proceedings related to the franchise agreement or the sale of the franchised business must be conducted on an individual basis, rather than as part of a class action lawsuit. This prevents a franchisee from joining with other franchisees to sue Degree Wellness as a group.

The waiver specifies that proceedings between the franchisee (referred to as "Developer" in the quote), their guarantors, and Degree Wellness cannot be consolidated with any other proceeding between Degree Wellness and any other third party. This ensures that each franchisee's case is handled separately, preventing the pooling of resources and legal strategies that a class action would allow.

Such waivers are relatively common in franchise agreements. They are intended to protect the franchisor from large, aggregated claims and to manage legal disputes on a case-by-case basis. However, this also means that a franchisee bears the full cost and risk of any legal action against Degree Wellness, without the ability to share resources or benefit from the collective bargaining power of a class.

Prospective franchisees should carefully consider the implications of this waiver, as it can significantly impact their ability to seek legal recourse against Degree Wellness. It may be prudent to consult with an attorney to fully understand the rights and obligations under the franchise agreement, especially concerning dispute resolution and legal actions.