Where can I find the specific provisions related to the Degree Wellness franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| under the Franchise Agreement in any | ||
| respect, then all rights granted to you | ||
| under the Franchise Agreement shall | ||
| immediately | ||
| and | ||
| automatically | ||
| terminate and revert to us without | ||
| further notice to you or action on our | ||
| part. | ||
| A termination of your Franchise | ||
| Agreement will not automatically | ||
| result | ||
| in | ||
| a | ||
| termination | ||
| of | ||
| your | ||
| Development | ||
| Agreement, | ||
| if | ||
| applicable. | ||
| g. "Cause" defined –curable defaults | Section 15 | You do not pay us within 10 days after written notice; you do not comply with any other provision of the Franchise Agreement or specification, standard, or operating procedure and do not correct such failure within 30 days after written notice. |
| h. "Cause" defined – non-curable defaults | Section 15 | You fail to timely develop or open the franchise; you (or any individuals required to attend) fail to attend and/or successfully complete any required initial training or subsequent mandatory training; you abandon, surrender, transfer control of or do not actively operate the franchise or lose the right to occupy the franchise location; you or any Principal Owner make an unauthorized transfer or assignment of the franchise or its assets; you are adjudged a bankrupt, become insolvent, or make an assignment for the benefit of creditors, or you fail to satisfy any judgment rendered against you for a period of 30 days after all appeals have been exhausted; you use, sell, or distribute unauthorized products, or use any patient referral or marketing services that has not been formally approved by us in writing and in advance for your franchise or for the franchise system as a whole; you or your Principal Owners are convicted |
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| Agreement, we may terminate the | ||
| Franchise Agreement. | ||
| i. Your obligations on termination/ non-renewal | Section 16 | You must pay all amounts owed to us; refrain from using our Marks, return to us or destroy (as we specify) all customer lists, forms and materials bearing our Marks or relating to the franchise; de-identify the franchise premises; return the Operations Manual; comply with covenants against competition and the non solicitation, non-disparagement, and non-disclosure covenants in Section 9 of the Franchise Agreement; and cease using all confidential information. |
| You irrevocably appoint us your | ||
| attorney-in-fact- | ||
| to de-identify your | ||
| franchise premises and enforce your | ||
| requirement to discontinue use of the | ||
| Marks if you do not perform these | ||
| obligations within 10 days of the | ||
| termination of your Agreement. | ||
| You | ||
| must | ||
| also | ||
| (1) | ||
| execute | ||
| any | ||
| documents | ||
| and | ||
| take | ||
| any | ||
| steps | ||
| necessary to delete your listings from | ||
| classified | ||
| telephone | ||
| directories, | ||
| disconnect, or, at our option, assign to | ||
| us all telephone numbers that have | ||
| been | ||
| used | ||
| in | ||
| your | ||
| Franchised | ||
| Business, assign to | ||
| us any URLs, | ||
| domain names, and social media and | ||
| social networking names that you | ||
| have used in connection with your | ||
| Franchised Business, and terminate | ||
| all other references that indicate you | ||
| are or ever were affiliated with us, and | ||
| (2) give us a final accounting for your | ||
| Studio, and you must maintain all | ||
| accounts and records for your Studio | ||
| for a period of not less than seven | ||
| years after final payment of any | ||
| amounts you owe to us, our affiliates, | ||
| and/or related persons, but you may | ||
| not | ||
| sell, | ||
| disclose, | ||
| or | ||
| otherwise |
[Item 17: Renewal, Termination, Transfer, and Dispute Resolution]
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| interest | ||
| within | ||
| 12 | ||
| months; | ||
| all | ||
| transfers are subject to provisions in | ||
| Franchise | ||
| Agreement | ||
| regulating | ||
| transfers. | ||
| q. Non-competition covenants during the term of the franchise | Section 9.3 and 17.8 | Neither you, your Principal Owners, General Managers, nor any immediate family members of you or your Principal Owners may perform services for or have any interest in any competitive business. |
| r. Non-competition covenants after | ||
| the franchise is terminated or | ||
| expires | Not applicable | |
| Not applicable. | ||
| s. Modification of the agreement | Section 20 | |
| No | ||
| modifications | ||
| to | ||
| Franchise | ||
| Agreement unless you and we agree | ||
| in writing; we may amend Operations | ||
| Manual at any time. | ||
| t. Integration/merger clause | Section 20 | |
| Only | ||
| the | ||
| Franchise | ||
| Agreement | ||
| applies (subject to state and federal | ||
| law); all other agreements or promises | ||
| not enforceable, except that nothing | ||
| in the Franchise Agreement will | ||
| operate to waive or disclaim your | ||
| right to rely on the representations | ||
| and claims asserted in this FDD. | ||
| u. Dispute resolution by arbitration or mediation | Section 17.9 | Except for certain claims, we and you must arbitrate all disputes in Duvall, Florida (subject to state law) before a single arbitrator with the American Arbitration Association. |
| Except as we elect to enforce the | ||
| Franchise | ||
| Agreement | ||
| or | ||
| to | ||
| seek | ||
| temporary or permanent injunctive | ||
| relief, before either party commences | ||
| an arbitration, the parties agree that, | ||
| as a condition precedent to the filing | ||
| or commencement of any arbitration, | ||
| they | ||
| will attempt to resolve any | ||
| dispute through internal mediation | ||
| between the partiesto be conducted in | ||
| a mutually agreeable location, or if no | ||
| such location is agreed upon within | ||
| 10 days after a request for mediation, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Item 17 provides a table that summarizes key provisions within the franchise agreement and indicates the specific section in the agreement where each provision is detailed. These provisions cover a range of topics relevant to the franchise relationship.
For instance, the table outlines conditions under which Degree Wellness may terminate the franchise agreement, categorizing these conditions into curable and non-curable defaults, each referencing Section 15 of the franchise agreement. Curable defaults involve situations where the franchisee has a chance to rectify the issue, such as failure to make timely payments after notice or failure to comply with operational standards, with a 30-day window to correct the failure after written notice. Non-curable defaults, on the other hand, include more severe breaches like failing to open the franchise on time, abandoning the business, or making unauthorized transfers.
The table also addresses the franchisee's obligations upon termination or non-renewal of the franchise agreement, as detailed in Section 16. These obligations include financial responsibilities, ceasing the use of Degree Wellness's trademarks, returning confidential information, and complying with non-compete and non-solicitation covenants. Furthermore, the table summarizes provisions related to non-competition covenants during the franchise term (Section 9.3 and 17.8), modifications to the agreement (Section 20), integration/merger clauses (Section 20), and dispute resolution through arbitration or mediation (Section 17.9).