What does 'internal mediation' consist of when resolving disputes with Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided in Section 14 of this Agreement, before either party commences an arbitration under this Section, 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 shall be submitted for arbitration pursuant to this Section. "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 same.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, internal mediation is a required step before formal arbitration, unless Degree Wellness seeks to enforce the agreement or pursue injunctive relief. Internal mediation involves reasonable business discussions between the parties, either by telephone or in person, to try and resolve the dispute.
This process must occur in a mutually agreed-upon location, or at Degree Wellness's corporate headquarters if a location cannot be agreed upon within 10 days of the mediation request. The internal mediation period lasts for 30 days from the date of the written request for mediation. If no resolution is reached within this timeframe, the dispute can then proceed to arbitration.
For a prospective franchisee, this means that before initiating arbitration, they must first attempt to resolve the issue directly with Degree Wellness through discussions. This initial step aims to foster open communication and potentially resolve disputes efficiently and amicably, saving both parties time and resources associated with formal arbitration.