What rights do parties waive regarding the arbitrator's award in a Degree Wellness arbitration?

According to Degree Wellness's 2025 Franchise Disclosure Document, both parties involved in an arbitration agreement waive any right to contest the validity or enforceability of the arbitrator's award. This means that once the arbitrator makes a decision, both Degree Wellness and the franchisee are bound by it and cannot challenge it in court based on arguments about its validity or enforceability. The judgment on the award may be entered in any court of competent jurisdiction, making the arbitration decision legally binding.

This waiver is significant because it limits the legal recourse available to both Degree Wellness and the franchisee after an arbitration decision. Arbitration is intended to be a faster and less expensive alternative to litigation, and waiving the right to contest the award reinforces this objective by making the arbitrator's decision final. However, it also means that if a party believes the arbitrator made an error of law or fact, their ability to appeal or challenge the decision is severely restricted.

For a prospective Degree Wellness franchisee, this provision underscores the importance of carefully considering the implications of agreeing to arbitration. It highlights the need to present the strongest possible case during the arbitration process, as the outcome will likely be final and binding. Franchisees should seek legal counsel to fully understand their rights and obligations under the arbitration agreement and to ensure they are adequately represented during the arbitration process. This is a fairly standard clause in franchise agreements, but its impact should not be underestimated.

It is also important to note that the arbitrator has broad authority to award relief, including money damages, specific performance, injunctive relief, attorneys' fees, and costs. This comprehensive power further emphasizes the importance of the arbitration process, as the arbitrator's decision can have significant financial and operational consequences for both parties.