What conditions must a Degree Wellness franchisee meet to be eligible 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 to us a renewal fee equal to $10,000.00 concurrently with signing the renewal Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, to renew a franchise, the franchisee and their Principal Owners must execute the current form of the Franchise Agreement and any related ancillary agreements. These agreements may have terms that differ significantly from the original agreement, potentially including increased Continuing Franchise Fees and Fund contributions. The renewal is contingent upon accepting these new terms.
A renewal fee of $10,000.00 is required upon signing the renewal Franchise Agreement. Additionally, the franchisee and their Principal Owners must provide general releases of any claims against Degree Wellness and its affiliates, in a form satisfactory to Degree Wellness.
If Degree Wellness sends a notice of non-renewal, it will specify the reasons for the refusal to renew the franchise agreement. Prospective franchisees should be aware that renewal is not guaranteed and is subject to Degree Wellness's discretion and the franchisee's acceptance of potentially less favorable terms.