What is the condition for a Degree Wellness franchisee to renew their franchise agreement?
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, to renew the franchise, the franchisee and their Principal Owners must execute the form of Franchise Agreement and any ancillary agreements that Degree Wellness is then customarily using for franchise renewals, with modifications to reflect that it is a renewal. No initial franchise fee is payable upon renewal.
The terms of the Franchise Agreement that the franchisee must execute upon renewal, and any other agreements Degree Wellness may require, may differ materially from those contained in the original agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. The right to renew is contingent upon acceptance of the new terms.
The franchisee must pay a renewal fee of $10,000 concurrently with signing the renewal Franchise Agreement. The franchisee and their Principal Owners must also execute general releases, in a form satisfactory to Degree Wellness, of any and all claims against Degree Wellness and its affiliates, and their respective owners, officers, directors, employees, and agents.