Does the Degree Wellness Franchise Agreement include an Owner's Guaranty and Assumption of Franchisee's Obligations Agreement as an exhibit?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Franchise Agreement, which includes an Owner's Guaranty and Assumption of Franchisee's Obligations Agreement, is listed as an exhibit. Specifically, Exhibit B to the Franchise Agreement includes the Owner's Guaranty and Assumption of Franchisee's Obligations Agreement.

This means that prospective Degree Wellness franchisees should carefully review Exhibit B of the Franchise Agreement. The Owner's Guaranty and Assumption of Franchisee's Obligations Agreement likely requires the owner or a principal of the franchisee entity to personally guarantee the franchisee's obligations under the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee defaults on its obligations.

Before signing the Franchise Agreement, potential Degree Wellness franchisees should seek legal counsel to fully understand the implications of the Owner's Guaranty and Assumption of Franchisee's Obligations Agreement. Franchisees should pay close attention to the scope of the guarantee, the conditions under which it can be triggered, and the potential liabilities they may face as a guarantor. Understanding these aspects is crucial for making an informed decision about investing in a Degree Wellness franchise.