What document must each owner of a Degree Wellness franchise sign, agreeing to be bound by the franchisee's obligations?

According to Degree Wellness's 2025 Franchise Disclosure Document, if the franchisee is a legal entity, each owner must sign an Assumption and Guarantee of Obligations, which is attached to the Franchise Agreement as Exhibit 3. By signing this document, each owner agrees to be bound by and guarantees the franchisee's obligations under the Franchise Agreement.

This requirement ensures that all owners of the franchise business are personally responsible for upholding the terms of the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of a breach of contract. It also aligns the interests of the owners with the success of the Degree Wellness franchise.

Prospective franchisees should carefully review the Assumption and Guarantee of Obligations document (Exhibit 3) to fully understand the scope of their personal liability. They should also consult with an attorney or financial advisor to assess the potential risks and implications of signing such a guarantee. This is especially important if the franchise is owned by multiple individuals or entities, as each owner will be jointly and severally liable for the franchisee's obligations.