Under what conditions can a Degree Wellness franchisee bring an action in Washington?

According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee in Washington is only responsible for attorney's fees if Degree Wellness is the substantially prevailing party in a legal action, as applicable by state law. This means that if a Degree Wellness franchisee in Washington initiates a legal action against the franchisor and wins, they may be able to recover their attorney's fees. However, if Degree Wellness wins the legal action, the franchisee will be responsible for Degree Wellness's attorney's fees.

This stipulation is important for prospective Degree Wellness franchisees in Washington because it clarifies the financial risks associated with legal disputes. Franchise agreements often contain clauses about who pays attorney's fees, and these can vary significantly. Some agreements might require the franchisee to pay the franchisor's legal fees regardless of who wins, which can be a significant financial burden.

The inclusion of this clause in the Washington addendum suggests that Washington state law provides specific protections or considerations regarding attorney's fees in franchise disputes. Prospective franchisees should consult with an attorney to fully understand their rights and obligations under Washington law and the Degree Wellness franchise agreement. This ensures they are aware of the potential costs associated with legal action and can make informed decisions about their investment.