What constitutes a failure to 'actively operate' the Degree Wellness franchise that could lead to termination?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 Event of Default. Subject to applicable law, you will be deemed to be in default under this Agreement, and we will have the right to terminate this Agreement effective upon delivery of notice of termination to you, subject only to any right to cure to the extent expressly set forth below or mandated pursuant to applicable law, if:
- b. you abandon, surrender, transfer control of, lose the right to occupy the Premises of, or do not actively operate, the Franchise, or your lease for or purchase of the location of the Franchise is terminated for any reason;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, failing to actively operate the franchise is grounds for termination of the franchise agreement. Specifically, if the franchisee abandons, surrenders, transfers control, or loses the right to occupy the premises, Degree Wellness has the right to terminate the agreement. This also applies if the lease or purchase agreement for the franchise location is terminated for any reason.
This provision underscores the importance of maintaining continuous operation of the Degree Wellness studio. A franchisee must remain engaged in the day-to-day management and actively work to sustain the business. Any prolonged absence or failure to maintain control over the franchise could be construed as a failure to actively operate the business.
For a prospective franchisee, this means understanding the commitment required to run the Degree Wellness franchise successfully. It is crucial to have a solid business plan, secure the premises with a stable lease or purchase agreement, and ensure consistent management to avoid any situation that could lead to termination of the franchise agreement. The franchisee should also be aware of the conditions under which their lease can be terminated and have contingency plans in place.