According to the South Dakota Amendment, what is being amended for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 6 until the franchisor completes its pre-opening obligations under the franchise agreement. first franchise under the development agreement opens. above. of the Franchise Disclosure Document is supplemented by the following: Based upon the franchisor's financial condition, the South Dakota Securities Regulation Office has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred "In addition, all development fees and initial payments by area developers shall be deferred until the
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the South Dakota Amendment addresses the deferral of fees and payments due to the franchisor's financial condition. Specifically, the amendment supplements the Franchise Disclosure Document, stipulating that the South Dakota Securities Regulation Office requires financial assurance from Degree Wellness.
As a result of this requirement, all initial fees and payments owed by Degree Wellness franchisees in South Dakota are deferred. This deferral remains in effect until Degree Wellness fulfills its pre-opening obligations as outlined in the franchise agreement.
Furthermore, the amendment states that all development fees and initial payments by area developers in South Dakota are also deferred. These payments are postponed until the first Degree Wellness franchise under the development agreement commences operations. This amendment protects new franchisees.