Are Degree Wellness franchisees in Minnesota subject to termination fees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to the disclosures in Items 6 and 17 of the Disclosure Document, regarding termination fees, Minn. Rule 2860.4400J prohibits termination fees. Accordingly, Items 6 and 17 of the Disclosure Document and Section 15 of the Franchise Agreement are hereby amended to remove all provisions regarding termination fees with respect to franchises governed by Minnesota law.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Minnesota franchisees are not subject to termination fees. The addendum to the Franchise Disclosure Document for the state of Minnesota explicitly states that Minn. Rule 2860.4400J prohibits termination fees. Consequently, Items 6 and 17 of the Disclosure Document and Section 15 of the Franchise Agreement are amended to remove all provisions regarding termination fees for franchises governed by Minnesota law.
This means that if Degree Wellness terminates a franchise agreement in Minnesota, the franchisee will not be required to pay a termination fee, which can be a substantial cost in other states. This provides a significant financial protection for franchisees operating in Minnesota, as it eliminates a potential expense upon termination.
Prospective franchisees in Minnesota should carefully review the Minnesota Addendum to the Franchise Disclosure Document to fully understand their rights and protections under Minnesota franchise law. They should also confirm with Degree Wellness that the franchise agreement they sign reflects the removal of termination fees as stated in the addendum.