Can the Continuing Franchise Fee for a Degree Wellness franchise be different?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay to us a renewal fee equal to $10,000.00 concurrently with signing the renewal Franchise Agreement. You and your Principal Owners must also execute general releases, in a form satisfactory to us, of any and all claims against us and our affiliates, and our and their respective owners, officers, directors, employees, and agents.
3. DEVELOPMENT AND OPENING OF THE FRANCHISE
- 3.1 Site Selection Area; Site Approval; Lease or Purchase of Premises.
- You will use your best efforts to seek and select a proposed site for the Premises. The Premises must be location within the Site Selection Area identified in Exhibit 1.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Continuing Franchise Fee can change under certain circumstances, particularly upon renewal of the franchise agreement. The document states that the terms of the franchise agreement, including the Continuing Franchise Fees, may differ materially from the original agreement when the franchisee renews.
Specifically, Degree Wellness may increase the Continuing Franchise Fees and Fund contributions at the time of renewal. The franchisee's right to renew is contingent upon their acceptance of these new terms. In addition to potentially higher fees, the franchisee must pay a renewal fee of $10,000 and execute general releases of claims against Degree Wellness and its affiliates.
Furthermore, if any fees cannot be based on gross revenues due to legal or other reasons, Degree Wellness and the franchisee must negotiate an alternative fee arrangement. If they cannot reach an agreement, Degree Wellness reserves the right to terminate the agreement. This highlights the importance of understanding the conditions under which fees can be modified and the potential consequences of failing to agree on alternative terms.