What is the duration of the wind-down period following the termination of the Degree Wellness agreement, and what activities are included?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Wind Down Activities.
Upon termination of this Agreement for any reason, Staffer's obligations to perform the Services hereunder shall completely cease; provided, however, that the parties shall perform and make payments for such matters as are necessary to wind up their activities pursuant to this Agreement in an orderly manner for a period of six (6) months.
Any payments earned or Reimbursable Costs incurred by Staffer associated solely with the Services provided under this Agreement through the date of termination and through the Wind Down Period shall remain due and owing by the Group notwithstanding the termination of this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, upon termination of the agreement for any reason, the parties involved must perform and make payments for matters necessary to wind up their activities in an orderly manner. This wind-down period lasts for six months. After the termination of the agreement, Degree Wellness's obligation to perform services ceases completely.
This means that a franchisee needs to plan for a transition period after the franchise agreement ends, whether by choice or due to termination. During this six-month period, both Degree Wellness and the franchisee are expected to fulfill their remaining obligations to ensure a smooth closure. This includes settling any outstanding payments and addressing any unfinished business related to the services provided during the agreement's term.
Any payments earned or reimbursable costs incurred by Degree Wellness for services rendered up to the termination date and throughout the wind-down period remain the responsibility of the franchisee, despite the agreement's termination. This clause ensures that Degree Wellness is compensated for work completed or expenses incurred during this transition phase.