Does the Degree Wellness agreement allow for the recovery of attorney's fees in the event of a dispute?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- b.
Liquidated Damages.
You agree that precise damages are difficult to calculate for a breach or violation of the provisions of Section 9 of this Agreement.
Therefore, if you breach or violate Section 9 of this Agreement it is agreed that we would suffer actual damages of at least Fifty Thousand Dollars.
In addition to any liquidated damages permitted herein, you must pay to us any and all actual damages in excess of the liquidated amount, plus all attorneys' fees incurred by us as a direct or indirect result of any breach or violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement outlines specific instances where Degree Wellness can recover attorney's fees from franchisees in the event of a dispute.
Specifically, if Degree Wellness obtains an injunction or order of specific performance against a franchisee, the franchisee is responsible for covering Degree Wellness's costs. These costs include reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. This provision encourages franchisees to comply with the terms of the agreement, particularly those related to the use of trademarks, non-disclosure, non-solicitation, non-disparagement, and non-competition obligations.
Additionally, if a Degree Wellness franchisee breaches or violates Section 9 of the agreement, they must pay all actual damages exceeding $50,000, along with all attorneys' fees incurred by Degree Wellness as a direct or indirect result of the breach or violation. This clause highlights the importance of adhering to the specific provisions outlined in Section 9 and underscores the potential financial consequences of non-compliance.
These stipulations regarding attorney's fees are typical in franchise agreements, as they aim to protect the franchisor's interests and ensure compliance with the franchise agreement. Prospective Degree Wellness franchisees should carefully review these sections to understand their obligations and the potential financial implications of disputes.