When does the Degree Wellness Development Agreement expire if not terminated earlier?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Term and Termination.
- 6.1 This Agreement will begin on the Effective Date and, unless earlier terminated by Franchisor, will expire on the earlier of: (i) the last day of the calendar month that the final Studio is required to be opened and operating under the Development Schedule; or (ii) the date Developer actually opens the last Studio that Developer is granted the right to open under this Agreement. Upon expiration or termination of this Agreement for any reason, Developer will not have any territorial rights other than those that might be granted in connection with a "Protected Territory" associated with a Studio that Developer has opened and begun operating as of the date this Agreement is terminated or expires (if and as such rights are granted by Franchisor under the respective Franchise Agreement(s) that Developer entered into for such Studios).
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Development Agreement will expire, unless earlier terminated by Degree Wellness, on the earlier of two dates. The first possible date is the last day of the calendar month that the final studio is required to be opened and operating under the Development Schedule. The second possible date is the date the developer actually opens the last studio that the developer is granted the right to open under the agreement.
Upon expiration or termination of the Development Agreement, the developer will not have any territorial rights other than those that might be granted in connection with a "Protected Territory" associated with a studio that the developer has opened and begun operating as of the date the agreement is terminated or expires. These rights are granted by Degree Wellness under the respective Franchise Agreements that the developer entered into for such studios.
It is important for a prospective Degree Wellness developer to understand the Development Schedule and the implications of failing to meet the required opening dates, as this directly impacts the term of the Development Agreement and the associated territorial rights. Developers should also clarify the conditions under which Degree Wellness might terminate the agreement early, and what recourse they would have in such a situation.