Is the dissolution of Group grounds for immediate termination of the Degree Wellness agreement by Staffer?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Immediate Termination.
Notwithstanding any other provision hereof, this Agreement may be terminated by Staffer for cause, upon one (1) day's prior written notice to Group, upon the occurrence of any of the following events:
- (vi) the dissolution of Group for any reason.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the dissolution of the Group (the franchisee) is grounds for immediate termination of the agreement by Staffer. Specifically, Staffer can terminate the agreement with one day's prior written notice if the Group dissolves.
This means that if the franchisee's business entity dissolves for any reason, Degree Wellness has the right to terminate the franchise agreement relatively quickly. This could occur due to bankruptcy, voluntary liquidation, or other circumstances leading to the legal end of the franchisee's business.
In the event of termination due to dissolution or liquidation, any residual funds remaining after paying all other debts will be paid to Staffer as a final Monthly Staffing and Ancillary Fee for services rendered prior to the dissolution or liquidation. This clause ensures that Degree Wellness is prioritized to receive any outstanding payments owed to them before the remaining funds are distributed elsewhere. Prospective franchisees should consider the implications of this clause and how it might affect the distribution of assets if their business dissolves.