Can a party contest the validity or enforceability of an arbitration award related to Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. Awards and Decisions. The arbitrator shall have the right to award or include in his award any relief that he or she deems proper in the circumstances, including without limitation, money damages (with interest on unpaid amounts from date due), specific performance, injunctive relief (including permanent, temporary, and preliminary injunctive relief), attorneys' fees, and costs. The award and decision of the arbitrator shall be conclusive and binding on all parties to this agreement, and judgment on the award may be entered in any court of competent jurisdiction, and each such party waives any right to contest the validity or enforceability of such award.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, both parties, the franchisee and franchisor, waive their rights to contest the validity or enforceability of an arbitration award. The FDD specifies that the arbitrator's award and decision are conclusive and binding on all parties involved in the franchise agreement. Furthermore, a judgment on the award may be entered in any court with competent jurisdiction.
This clause means that once an arbitrator makes a decision, neither Degree Wellness nor the franchisee can challenge that decision in court, even if they disagree with the outcome. This promotes a quicker and more efficient resolution process, avoiding lengthy and costly court battles. However, it also means that both parties must accept the arbitrator's decision, even if they believe it is unfair or incorrect.
It is important to note that this waiver applies to the validity and enforceability of the award itself, not necessarily to the underlying claims or disputes that led to the arbitration. Franchisees should carefully consider the implications of this clause before signing the franchise agreement, as it limits their legal recourse in the event of a dispute with Degree Wellness. Prospective franchisees might want to seek legal counsel to fully understand the arbitration process and the limitations it places on their rights.