What constitutes a curable default that could lead to termination of the Degree Wellness Development Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| g. | "Cause" defined – curable defaults | Section 6.2 | We may terminate the Development Agreement if you fail to meet your development obligations under the Development Agreement |
| during the Development Period (including any monetary default) and you fail to cure such default within 30 days of receiving notice. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a curable default that could lead to the termination of the Development Agreement occurs if the developer fails to meet their development obligations under the agreement. In such cases, Degree Wellness may terminate the Development Agreement if the developer fails to meet their obligations during the Development Period, including any monetary default, and does not cure the default within 30 days of receiving notice.
This means that if a Degree Wellness developer does not fulfill the agreed-upon schedule for opening new studios or fails to make required payments, they will be considered in default. However, the developer has a 30-day window after receiving written notice to rectify the situation. This cure period allows the developer to address the issue, whether it's catching up on payments or accelerating the development timeline, to avoid termination of the agreement.
It is important for prospective Degree Wellness developers to understand their development obligations and ensure they have the resources and plans in place to meet them. Failing to do so could lead to a default and potential termination of the Development Agreement, resulting in the loss of their development rights. Paying close attention to the development schedule and maintaining open communication with Degree Wellness can help developers avoid such defaults and maintain a successful partnership.