Does the Degree Wellness franchise agreement specify any conditions for renewal besides compliance with the franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
io franchise. You should read these provisions in the agreements attached to this Disclosure Document.**
THE FRANCHISE RELATIONSHIP
Franchise Agreement
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of franchise term | Section 2.1 | 10 years |
| b. Renewal or extension of the term | Section 2.4 | Additional terms of 10 years |
| c. Requirements for you to renew or extend | Section 2.4 | The term "renewal" means that you will be granted a franchise for 1 additional term, equal in length to the initial term, subject to your compliance with all the terms of the Franchise Agreement and all other agreements between you and us, |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| including the Operations Manual. At | ||
| least 6 months before the expiration | ||
| of your franchise, we will notify you | ||
| as to whether you appear eligible to | ||
| renew the Franchise or, if applicable, | ||
| we will provide you with a notice of | ||
| deficiencies. | ||
| If you appear to be | ||
| eligible for renewal, we will ask you | ||
| to provide us with notice of your | ||
| intent to renew within a specific time | ||
| period after receipt of our notice. | ||
| Also, you must: maintain possession | ||
| of | ||
| premises | ||
| and | ||
| refurbish | ||
| and | ||
| redecorate in compliance with our | ||
| then current requirements or obtain | ||
| and | ||
| develop | ||
| suitable | ||
| substitute | ||
| premises; correct any deficiencies in | ||
| the | ||
| operation | ||
| of | ||
| the | ||
| franchise | ||
| identified in our written notice to you | ||
| prior to expiration; sign our then | ||
| current franchise agreement and any | ||
| ancillary documents; pay a renewal | ||
| fee (see Item 6); and sign a general | ||
| release of any and all claims against | ||
| us, our officers, directors, employees | ||
| and agents (see Exhibit H). You may | ||
| be asked to sign a contract with | ||
| materially | ||
| different | ||
| terms | ||
| and | ||
| conditions | ||
| than | ||
| your | ||
| original | ||
| Franchise Agreement. | ||
| Your right to | ||
| renew will be contingent upon your | ||
| acceptance of these new terms and | ||
| conditions. | ||
| d. Termination by you | None. | You may be able to terminate under |
| grounds permitted by applicable law. | ||
| The Franchise Agreement does not | ||
| give you a contract right to terminate | ||
| prior to the end of the stated term. | ||
| e. Termination by us without cause | Not applicable | Not applicable. |
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, a franchisee seeking to renew their franchise agreement must meet several conditions beyond simply complying with the existing agreement. The initial franchise term is 10 years, with an option to renew for an additional 10-year term. To be eligible for renewal, Degree Wellness will notify the franchisee about their eligibility approximately 6 months before the expiration of the franchise term, or provide a notice of deficiencies if applicable.
To renew their Degree Wellness franchise, a franchisee must maintain possession of the premises or obtain suitable substitute premises, correct any operational deficiencies identified by Degree Wellness, sign the then-current franchise agreement and any related documents, pay a renewal fee (as detailed in Item 6 of the FDD), and sign a general release of claims against Degree Wellness and its representatives. The new franchise agreement presented at the time of renewal may contain materially different terms and conditions than the original agreement, and the franchisee's right to renew is contingent upon accepting these new terms.
These renewal conditions are fairly typical in franchising, as franchisors often update their franchise agreements to reflect changes in the market, legal requirements, or their business model. The requirement to refurbish or relocate the premises ensures that the franchise maintains a consistent brand image. The renewal fee compensates Degree Wellness for the continued use of its trademarks and systems. The general release protects Degree Wellness from potential legal claims arising from the prior term of the franchise agreement. Prospective franchisees should carefully consider these renewal conditions and the potential for changes in the franchise agreement when evaluating the Degree Wellness franchise opportunity.