If arbitration is required for a Degree Wellness franchise dispute, where will the arbitration proceedings be conducted?

According to Degree Wellness's 2025 Franchise Disclosure Document, arbitration proceedings will be conducted in Duvall County, Florida. This applies to all controversies, disputes, or claims arising between Degree Wellness, its affiliates, and their respective owners, officers, directors, agents, and employees, and the franchisee (including their Principal Owners and guarantors). These disputes must arise out of or relate to the Franchise Agreement, any provision thereof, any related agreement (except for leases or subleases with Degree Wellness or its affiliates), the relationship of the parties, the validity of the agreement, or any specification, standard, or operating procedure relating to the establishment or operation of the franchise.

This requirement means that a franchisee may have to travel to Florida to resolve disputes with Degree Wellness, which could increase the cost of resolving any legal issues. Franchisees should be aware of this potential financial burden and consider it when evaluating the franchise opportunity. It is common for franchise agreements to specify a location for arbitration, often favoring the franchisor's home state, but franchisees can attempt to negotiate this point during the franchise agreement negotiation process.

However, the FDD also states that Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may take place outside of Illinois. This creates a potential conflict if a Degree Wellness franchisee is located in Illinois, as the enforceability of the arbitration location clause may be challenged under Illinois law. Franchisees in Illinois should seek legal counsel to understand their rights and obligations regarding arbitration proceedings.