What is the geographic limit to the additional disclosures described for Degree Wellness in this section?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT K EXHIBIT L
MULTI-STATE ADDENDA AND RIDERS
ADDITIONAL DISCLOSURES
CALIFORNIA
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF CALIFORNIA
Additional Disclosures Required in California
Registration of this franchise with the Commissioner of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the Commissioner.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
Section 31125 of the California Franchise Investment Law requires us to give to you a disclosure document approved by the Commissioner of Financial Protection and Innovation before we ask you to consider a material modification of your Franchise Agreement.
With respect to the disclosures in Item 3 of the Disclosure Document, neither Degree Wellness Franchise, LLC nor any person identified in Item 2 of this Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et. seq., suspending or expelling such persons from membership in that association or exchange.
With respect to the information disclosed in Item 17 of the Disclosure Document:
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the additional disclosures described in the section apply specifically to the state of California. The document includes an addendum titled "ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF CALIFORNIA," indicating that the subsequent information is intended to comply with the California Franchise Investment Law.
This means that prospective Degree Wellness franchisees in California will receive additional disclosures tailored to the specific legal requirements of that state. These disclosures cover aspects such as registration with the Commissioner of Financial Protection and Innovation, requirements for delivering proposed agreements, and modifications to the Franchise Agreement.
The addendum clarifies that registration of the franchise with the Commissioner does not constitute an endorsement. It also references specific sections of the California Franchise Investment Law, emphasizing the importance of delivering a disclosure document before considering any material modifications to the Franchise Agreement. Furthermore, it addresses disclosures related to Item 3 and Item 17 of the Disclosure Document, providing additional context relevant to California franchisees.
For potential Degree Wellness franchisees outside of California, these additional disclosures would not apply. Franchisees in other states would receive disclosures relevant to their respective state laws, if any. This highlights the importance of reviewing all addenda and disclosures specific to the state in which the franchise will be located to ensure full compliance with local regulations.