Does the Degree Wellness franchise agreement specify any fees associated with renewal or extension?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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, the franchise agreement does address renewal fees. To renew the franchise for an additional term of 10 years, a franchisee must pay a renewal fee, as specified in Item 6 of the FDD.
In addition to the renewal fee, the franchisee must meet several other conditions to be eligible for renewal. These include maintaining possession of the premises or securing suitable substitute premises, correcting any operational deficiencies identified by Degree Wellness, signing the then-current franchise agreement and ancillary documents, and signing a general release of claims against Degree Wellness and its representatives.
It is important to note that the new franchise agreement presented at the time of renewal may contain materially different terms and conditions than the original agreement. The franchisee's right to renew is contingent upon accepting these new terms. Degree Wellness will notify the franchisee at least 6 months before the expiration of the franchise term regarding their eligibility for renewal.