Is internal mediation required before commencing arbitration with Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Internal Mediation Prior to Arbitration.
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 generally required before either party can commence arbitration. As a condition precedent to filing or commencing arbitration, both parties must attempt to resolve any dispute through internal mediation. This mediation is to be conducted in a mutually agreeable location, or, if no location is agreed upon within 10 days after a request for mediation, at Degree Wellness's corporate headquarters.
Internal mediation involves the parties engaging in reasonable business discussions, whether by telephone or in person, concerning the dispute and ways to resolve it. If no settlement or resolution is reached within thirty (30) days following the date of a written request for internal mediation, the dispute can then be submitted for arbitration.
However, there is an exception to this requirement. Degree Wellness is not required to participate in internal mediation if it elects to enforce the Franchise Agreement or seeks temporary or permanent injunctive relief. This means that Degree Wellness can bypass mediation and proceed directly to arbitration or court if the matter involves enforcing the agreement or seeking an injunction.