What are the conditions under which Degree Wellness may terminate the franchise agreement (Item 9), and how does this relate to the franchisee's obligations regarding compliance with standards and procedures?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not in such compliance, we may, in our sole judgment, do any or all of the following until you fully correct the breach or default or Degree Wellness terminates this Agreement:
a. deny you access to the Degree Wellness website or Intranet;
b. remove your Franchised Business from the Franchised Business locator page and/or remove your interior pages, on the Degree Wellness Website;
c. remove your Franchised Business from the list of Franchised Businesses to which inquiries are referred;
d. remove your Franchised Business from the list of Franchised Businesses that are entitled to Degree Wellness-related discounts from approved vendors; and/or
e. remove your Franchised Business from the list of Franchised Businesses that are approved to participate in national or other alliance programs.
Degree Wellness may take any or all of these actions in addition to or instead of giving you notice of default and/or termination under this Agreement. You acknowledge and agree that Degree Wellness's withholding of performance services in accordance with this Section 15.4 will not constitute a breach of this Agreement and/or a defense to the enforcement by us of any provision of this Agreement, including the right to receive payment of Continuing Franchise Fees as provided in Section 6.2. You also acknowledge and agree that, should we choose to withhold performance rather than terminate this Agreement, Degree Wellness's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Degree Wellness outlines specific actions it may take if a franchisee fails to comply with the franchise agreement standards and procedures. Degree Wellness can deny access to their website or intranet, remove the franchised business from the business locator page on their website, remove the business from referral lists, discount lists from approved vendors, and remove the business from alliance programs. These actions can be taken until the breach is corrected or the agreement is terminated.
Degree Wellness may take these actions instead of or in addition to providing a notice of default or termination. The document states that withholding performance services does not constitute a breach of the agreement by Degree Wellness, nor does it serve as a defense against the enforcement of any provision, including the right to receive Continuing Franchise Fees.
Furthermore, if Degree Wellness chooses to withhold performance rather than terminate the agreement, this does not waive their right to terminate the agreement later for the same or any other default. This ensures that Degree Wellness retains the ability to enforce compliance with its standards and procedures, and to protect its brand and system standards.