For a Degree Wellness franchise, for how long will the agreement automatically renew following the initial term?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2 This Agreement will automatically renew for additional one (1) year periods following the end of the initial term unless Management Company or Licensed Provider provides written notice of non-renewal at least 60 days prior to the end of the initial term or current renewal term.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement automatically renews for additional one-year periods after the initial term. This automatic renewal continues unless either Degree Wellness (referred to as Management Company in the agreement) or the franchisee (referred to as Licensed Provider) provides written notice of non-renewal.
To prevent automatic renewal, the non-renewal notice must be given at least 60 days before the end of either the initial term or the current renewal term. This means a franchisee needs to actively monitor the agreement's expiration date and adhere to the notification timeline if they do not wish to continue the franchise agreement.
This renewal structure provides a degree of continuity for both Degree Wellness and its franchisees, but it also places the onus on both parties to communicate their intentions proactively. Franchisees should be aware of this clause to avoid unintended extensions of the agreement and should mark their calendars accordingly to ensure timely notification if they plan to discontinue the franchise.