Besides the franchisee, who else must execute the renewal agreement for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
fied. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, both the franchisee and their Principal Owners are required to execute the renewal agreement to renew the franchise. This agreement will be in the form that Degree Wellness is then currently using for franchise grants or renewals, with modifications to reflect that it is a renewal.
It is important to note that the terms of the renewal franchise agreement, and any other agreements Degree Wellness requires, may differ significantly from the original agreement. This includes the possibility of increased Continuing Franchise Fees and Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms.
Furthermore, the franchisee must pay a renewal fee of $10,000.00 concurrently with signing the renewal Franchise Agreement. In addition to the renewal agreement, both the franchisee and their Principal Owners must execute general releases, in a form satisfactory to Degree Wellness, of any and all claims against Degree Wellness, its affiliates, and their respective owners, officers, directors, employees, and agents. This requirement is fairly standard in franchising, as it resolves any potential disputes upon renewal.