What section of the Degree Wellness agreement discusses the circumstances under which injunctive relief may be sought instead of internal mediation or arbitration?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided in Section 17.8 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.
17.8 Specific Performance; Injunctive Relief; Liquidated Damages.
- a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or Degree Wellness franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Section 17.8 outlines the circumstances where Degree Wellness may seek injunctive relief instead of internal mediation or arbitration. Specifically, before either party initiates arbitration, they must attempt internal mediation, except when Degree Wellness seeks to enforce the agreement or obtain temporary or permanent injunctive relief, as detailed in Section 17.8 of the agreement.
Section 17.8(a) further clarifies that Degree Wellness is entitled to temporary and permanent injunctions and orders of specific performance, without needing to post a bond, under certain conditions. These conditions include enforcing provisions related to the franchisee's use of Degree Wellness's marks, non-disclosure, non-solicitation, non-disparagement, and non-competition obligations, as well as any Restrictive Covenants Agreement signed by a General Manager.
Additionally, injunctive relief may be sought to prohibit any act or omission by the franchisee or their employees that violates applicable laws, ordinances, or regulations, poses a danger to the public, or impairs the goodwill associated with the Degree Wellness marks or franchises. It also applies to preventing any other irreparable harm to Degree Wellness's interests. If Degree Wellness obtains such an injunction or order, the franchisee is responsible for covering all associated costs, including attorneys' and expert witness fees, investigation costs, court costs, litigation expenses, and travel and living expenses, as well as any damages incurred due to the breach. The franchisee also waives any claims for damages if the injunction or specific performance order is later determined to have been issued improperly.