How many depositions are each side limited to in Degree Wellness arbitration discovery?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Arbitration Discovery. Discovery under the arbitration will be limited to the following for each side: (i) three depositions totaling 12 hours; (ii) six interrogatories each consisting of no more than 12 questions (with no subparts); and (iii) three document requests. The discovery may also be limited in any other manner as specified by the arbitrator, who will limit discovery to the greatest extent possible consistent with basic fairness.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, in the event of arbitration, each side is limited to three depositions. The total time for these depositions is capped at 12 hours. In addition to depositions, each side is limited to six interrogatories, with each interrogatory consisting of no more than 12 questions, and three document requests.
This limitation on discovery is intended to streamline the arbitration process and control costs. However, it's important to note that the arbitrator has the authority to further limit discovery to ensure fairness. This means that a Degree Wellness franchisee might have less access to information compared to litigation in a traditional court setting.
Prospective Degree Wellness franchisees should consider the implications of these discovery limitations. While arbitration can be a faster and less expensive alternative to litigation, the restricted discovery process could impact a franchisee's ability to gather evidence and build a strong case. It is advisable to consult with a legal professional to understand the potential risks and benefits of the arbitration clause in the franchise agreement.