What constitutes grounds for immediate termination of the Degree Wellness Development Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement.
- 14.7 Effect of Consent to Transfer. Our consent to a proposed Transfer pursuant to this Section 14 will not constitute a waiver of any claims we may have against you or any Principal Owner, nor will it be deemed a waiver of our right to demand exact compliance with any of the terms or conditions of this Agreement by the Proposed New Owner. Unless otherwise specified in writing, you will be subject to all post-Transfer/post-termination obligations set forth in this Agreement.
15. TERMINATION OF THE FRANCHISE.
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:
a. you do not develop or open the Franchise, or you (or any individuals required to attend) fail to attend and/or successfully complete any required initial training or subsequent mandatory training, in accordance with all terms and conditions (including, without limitation, time limits) provided for in this Agreement;
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;
c.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, Degree Wellness has the right to terminate the agreement effective immediately upon delivering a notice of termination to the franchisee if an event of default occurs. This is subject to any applicable law or any right to cure the default, unless otherwise stated. An event of default includes failing to develop or open the franchise, or failing to attend and/or successfully complete any required initial or subsequent mandatory training.
Additionally, Degree Wellness can terminate the agreement if any fees cannot be based upon gross revenues due to legal reasons. In this case, Degree Wellness and the franchisee will negotiate an alternative fee arrangement. However, if an agreement cannot be reached, Degree Wellness can terminate the agreement, and the post-termination obligations outlined in Section 16 will apply.
It is important for prospective Degree Wellness franchisees to understand the specific conditions that could lead to termination without an opportunity to remedy the situation. Franchisees should carefully review the franchise agreement and related documents to fully understand their obligations and the potential consequences of failing to meet them. Consulting with a franchise attorney can provide further clarification and guidance on these matters.