What fees is Staffer entitled to be paid upon termination of the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
twithstanding any provision of this Agreement to the contrary, Staffer and Group shall take such steps as may be reasonably necessary to ensure the provision of proper care to patients then currently under treatment until appropriate alternative arrangements are made.
- (iii) Staffer shall be entitled to be paid any and all unpaid Monthly Staffing and Ancillary Fees accrued through the effective date of such termination. If Group is on a cash basis, then following the termination, if Group shall receive any payments related to the period during the effectiveness of this Agreement, Group shall make payments to Staffer in accordance with Exhibit C with respect thereto.
- (b) Upon termination of this Agreement by either party and for any cause or without cause, each party shall retain all of the assets owned by it; provided, however, if this Agreement is terminated due to Group's dissolution or liquidation, any residual funds, after paying all other debts, shall be paid to Staffer as a final Monthly Staffing and Ancillary Fee for services rendered prior to such dissolution or liquidation.
- (c) Wind Down Activities.
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, Staffer is entitled to certain payments. Specifically, Staffer will be paid any unpaid Monthly Staffing and Ancillary Fees that have accrued up to the termination date. If Degree Wellness Group operates on a cash basis, any payments received by the Group after termination that relate to the period when the agreement was effective must be paid to Staffer according to Exhibit C of the agreement.
Additionally, if the agreement is terminated due to the Group's dissolution or liquidation, any remaining funds after all other debts are paid will be given to Staffer as a final Monthly Staffing and Ancillary Fee for services rendered before the dissolution or liquidation.
Staffer is also entitled to payments earned or Reimbursable Costs incurred for services provided through the termination date and during the wind-down period, which lasts for six months. These amounts remain due and owing by the Group, even after the termination of the agreement. This ensures that Staffer is compensated for work completed and expenses incurred up to and during the winding down of activities related to the agreement.