Does the Degree Wellness franchise agreement discuss the possibility of non-uniform agreements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
fied. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the franchise agreement may be subject to change upon renewal. Specifically, the terms of the Franchise Agreement that a franchisee must execute upon renewal, and any other agreements Degree Wellness may require, may differ materially from those contained in the original agreement.
These potential changes include the possibility of increased Continuing Franchise Fees and Fund contributions. The right to renew the Degree Wellness franchise is contingent upon the franchisee's acceptance of these new terms. In addition to accepting potentially altered terms, the franchisee must pay a renewal fee of $10,000.00 and execute general releases of any and all claims against Degree Wellness and its affiliates.
This means that while the initial franchise agreement provides the framework for the business relationship, Degree Wellness retains the flexibility to modify the agreement's terms significantly at the time of renewal. Prospective franchisees should be aware that the financial obligations and other requirements could change, potentially impacting the profitability and operational aspects of their Degree Wellness franchise in the future. It is common practice in the franchise industry for franchisors to update their franchise agreements periodically to reflect changes in the market, legal requirements, or the franchise system itself.