What is the deadline for securing financing to fully develop a Degree Wellness franchise after signing the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. You agree at your own expense to do the following (i) within 12 months of the date of this Agreement, or (ii) if you sign this Agreement pursuant to the purchase of a Development Agreement, by the Opening Deadline defined in Exhibit 1:
- (1) secure all financing required to fully develop the Franchise;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a new franchisee has a specific timeframe to secure the necessary financing for their franchise. Specifically, the franchisee must secure all financing required to fully develop the Degree Wellness franchise within 12 months of signing the Franchise Agreement.
However, there is an exception to this 12-month rule. If the franchisee signs the agreement as part of purchasing a Development Agreement, the deadline shifts to the 'Opening Deadline' as defined in Exhibit 1 of the Franchise Agreement. This means that the exact deadline can vary depending on the specific circumstances of the agreement, particularly if a Development Agreement is involved.
This requirement is a critical aspect of the franchise agreement, as failure to secure financing within the stipulated timeframe could potentially lead to a breach of contract. Prospective franchisees should carefully review Exhibit 1 and any related Development Agreements to fully understand their specific deadlines and obligations for securing financing. It is also advisable to consult with financial advisors and legal counsel to ensure they can meet these requirements and avoid any potential issues during the development phase of their Degree Wellness franchise.