Does the Degree Wellness franchisee's obligation to defend and indemnify Degree Wellness continue after the termination of the franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
16.6 Continuing Obligations. All obligations of this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full or by their nature expire. Without limiting the foregoing, you acknowledge and agree that your covenants in Article 9 above survive the termination or expiration of this Agreement to the extent set forth in such Article 9.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, some obligations continue after the termination or expiration of the franchise agreement. Specifically, Section 16.6 states that all obligations that expressly or by their nature survive the expiration or termination of the agreement will continue in full force and effect. This continuation lasts until the obligations are fully satisfied or naturally expire.
Notably, the franchisee's covenants outlined in Article 9, which likely include confidentiality and non-compete agreements, also survive termination or expiration to the extent specified in Article 9. This means that even after the franchise agreement ends, the franchisee must continue to uphold these specific responsibilities.
While the excerpt confirms that certain obligations continue after termination, it does not explicitly detail whether the franchisee's obligation to defend and indemnify Degree Wellness specifically survives. A prospective franchisee should carefully review Article 9 and other relevant sections of the Franchise Agreement to fully understand which specific obligations, including defense and indemnification, extend beyond the termination of the agreement. It would be prudent to seek clarification from Degree Wellness regarding this matter to fully understand the scope of post-termination responsibilities.