What is the required first step in resolving a dispute between a Degree Wellness developer and the franchisor?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Internal Dispute Resolution. Developer must first bring any claim or dispute between Developer and Franchisor to Franchisor's management, after providing Franchisor with notice of and a reasonable opportunity to cure an alleged breach hereunder. Developer must exhaust this internal dispute resolution procedure before bringing a dispute before a third party. This agreement to first attempt resolution of disputes internally will survive termination or expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a developer who has a claim or dispute with Degree Wellness must first bring it to the attention of Degree Wellness's management. The developer must provide Degree Wellness with notice of the issue and allow a reasonable opportunity for Degree Wellness to address and resolve the alleged breach.
This internal dispute resolution procedure must be exhausted before the developer can take the dispute to a third party, such as initiating arbitration or a lawsuit. This requirement to attempt internal resolution survives even if the Development Agreement is terminated or expires.
This clause is fairly standard in franchise agreements. It aims to foster communication and potentially resolve issues amicably before escalating to more costly and time-consuming methods like arbitration or litigation. It also gives Degree Wellness an opportunity to correct any issues and maintain a positive relationship with its developers.