When does the Degree Wellness Franchise Agreement expire, assuming it is not terminated sooner?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a Degree Wellness Studio, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you
- a Franchise to operate a Studio offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for Degree Wellness Studios.
You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years.
The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement.
To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1.
Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below).
All references to the "Term of this Agreement" refer to the period from the Agreement Date to the date on which this Agreement actually terminates or expires.
- 2.2 Full Term Performance.
You specifically agree to be obligated to operate the Franchise, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the business of the Franchise for the entire Initial Term, and any subsequent renewal or extension of the Term of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement has an initial term of 10 years. The agreement begins on the 'Agreement Date,' and the expiration date is listed on Exhibit 1 of the FDD. The franchisee is obligated to operate the franchise for the entire initial term and any subsequent renewals or extensions. Therefore, to determine the exact expiration date, a prospective franchisee should refer to Exhibit 1 of the Franchise Agreement, as it specifies the expiration date of the initial 10-year term.
It is important to note that the agreement can terminate earlier than the stated expiration date under certain conditions, such as a breach of contract by the franchisee. Upon termination or expiration, the franchisee's rights to operate the Degree Wellness Studio, use the System, and utilize the Marks cease. The franchisee also has specific obligations regarding the use of confidential information and the removal of any branding or identification associated with Degree Wellness from the premises.
After the agreement terminates or expires, the franchisee must pay all outstanding amounts owed to Degree Wellness, including unpaid franchise fees. The franchisee is also prohibited from using any of Degree Wellness's intellectual property, including trademarks and copyrighted works. This includes refraining from identifying any business as a current or former Degree Wellness franchise and removing all Marks from uniforms and signage. These post-termination obligations are designed to protect Degree Wellness's brand and confidential information.
Prospective franchisees should carefully review Exhibit 1 of the Franchise Agreement to understand the specific expiration date of their franchise term. Additionally, they should be aware of the conditions under which the agreement can be terminated early and the obligations they will have upon termination or expiration. Understanding these terms is crucial for making an informed decision about investing in a Degree Wellness franchise.