What is the statute of limitations for claims arising out of the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.10 Waiver of Certain Damages and Jury Trial; Limitations of Actions.
Except with respect to your obligations to indemnify us and claims that we may bring under Sections 7, 9, 15, or 16 of this Agreement, and except for claims arising from your non-payment or underpayment of any amounts owed to us or our affiliates, (1) any and all claims arising out of or related to this Agreement or the relationship between you and us shall be barred, by express agreement of the parties, unless an action or proceeding is commenced within two (2) years from the date the cause of action accrues; and (2) you hereby waive to the fullest extent permitted by law, any right to or claim for any indirect, special, consequential, incidental, punitive, exemplary, or treble damages, and other forms of multiple damages, against us, including without limitation, any economic loss, property damage, physical injury, or lost profits arising out of this Agreement, your use of the Marks, the System, or your inability to use the Marks or the System, regardless of whether arising under breach of contract, warranty, tort, strict liability, or any other legal or equitable theory or claim, even if such loss or damage could have been reasonably foreseen.
Further, you agree that, except to the extent provided to the contrary in this Agreement, in the event of a dispute between you and us, you will be limited to the recovery of any actual damages sustained by you.
You and we irrevocably waive trial by jury in any action, proceeding or counterclaim, whether at law or in equity, brought by either you or us.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, any claims arising out of or related to the franchise agreement or the relationship between the franchisee and Degree Wellness must be commenced within two years from the date the cause of action accrues. This limitation does not apply to the franchisee's obligation to indemnify Degree Wellness, claims Degree Wellness brings under Sections 7, 9, 15, or 16 of the agreement, or claims arising from the franchisee's non-payment or underpayment of amounts owed to Degree Wellness or its affiliates.
This means that a Degree Wellness franchisee has a limited time to bring any legal action against the franchisor for issues related to the franchise agreement. Missing this deadline could result in the claim being barred. However, Degree Wellness retains the right to pursue certain claims against the franchisee without being subject to this two-year limitation.
Additionally, the FDD states that franchisees waive any right to indirect, special, consequential, incidental, punitive, exemplary, or treble damages against Degree Wellness, only being able to recover actual damages sustained. Both Degree Wellness and the franchisee also irrevocably waive trial by jury in any action, proceeding, or counterclaim brought by either party.
Prospective franchisees should be aware of these limitations and waivers, as they can significantly impact their legal rights and remedies in the event of a dispute with Degree Wellness. It is advisable to consult with an attorney to fully understand the implications of these provisions before signing the franchise agreement.