According to the Degree Wellness FDD, has any party been convicted of a felony?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is to be added at the end of Item 3:
Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
B. No such party has pending actions other than routine litigation incidental to the business that is significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
C.
No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten years immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the franchisor addresses the topic of felony convictions in Item 23. Specifically, the document states that unless otherwise provided, no party (including the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the Degree Wellness trademark) has been convicted of a felony or pleaded nolo contendere to a felony charge. This statement applies within the ten years immediately preceding the application for registration. The disclosure also extends to misdemeanor charges and civil actions alleging violations of franchise, antifraud, or securities laws, fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices.
This disclosure provides potential Degree Wellness franchisees with important information regarding the background of the franchisor and its key personnel. It assures them that, based on the franchisor's knowledge, no relevant party has a criminal history involving felonies or certain other offenses that could impact the integrity and management of the franchise system. This information can help franchisees assess the risk associated with investing in a Degree Wellness franchise.
It is important to note that this disclosure is limited to the specific parties mentioned (franchisor, predecessors, certain individuals, and affiliates) and is based on the franchisor's knowledge at the time of the FDD's issuance. While the FDD aims to provide transparency, prospective franchisees should still conduct their own due diligence, including background checks on key individuals, to ensure they are comfortable with the people and entities involved in the Degree Wellness franchise.