What constitutes a withdrawal from the Degree Wellness Group's Bank Account that would lead to immediate termination?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Studio Management Agreement outlines specific conditions under which the agreement can be terminated. Specifically, the agreement may be terminated by the Staffer (defined elsewhere as the 'Licensed Provider') with one day's prior written notice to the Group (defined elsewhere as the 'Degree Wellness Franchisee') if the Group makes any withdrawal from the Group's Bank Account that violates Exhibit A of the agreement.

This provision is significant for a prospective Degree Wellness franchisee because it highlights a specific action that can lead to immediate termination of the Studio Management Agreement. Exhibit A, which is not included in the provided excerpts, likely details the permitted uses and restrictions on the Group's Bank Account. Any deviation from these stipulations, resulting in an unauthorized withdrawal, gives the Staffer the right to terminate the agreement promptly.

This clause protects the Staffer by ensuring financial accountability and adherence to agreed-upon financial practices by the Group. It also places a strict obligation on the Group to manage its bank account in accordance with the terms outlined in Exhibit A, failure of which carries a significant penalty. A prospective franchisee should carefully review Exhibit A to fully understand what constitutes a prohibited withdrawal and the implications for their franchise agreement.

Given that Exhibit A is not provided, it is crucial for a potential Degree Wellness franchisee to request and thoroughly review this exhibit to understand the specific restrictions on the Group's Bank Account. Understanding these restrictions is essential for avoiding actions that could lead to immediate termination of the Studio Management Agreement.