What happens if a Degree Wellness franchisee loses the right to occupy the premises of the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
15.1 Event of Default. Subject to applicable law, you will be deemed to be in default under this Agreement, and we will have the right to terminate this Agreement effective upon delivery of notice of termination to you, subject only to any right to cure to the extent expressly set forth below or mandated pursuant to applicable law, if:
b. you abandon, surrender, transfer control of, lose the right to occupy the Premises of, or do not actively operate, the Franchise, or your lease for or purchase of the location of the Franchise is terminated for any reason;
You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.
You further agree that all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.
Upon termination of this Agreement for any reason, and in addition to any other provisions contained in this Agreement, the parties will have the following further rights and obligations:
You must promptly execute any documents and take any steps that in the judgment of Degree Wellness are necessary to delete your listings from classified telephone directories and on-line listings, disconnect, or, at Degree Wellness's option, assign to it all telephone numbers that have been used in your Franchised Business, assign to Degree Wellness any URLs, domain names, and social media and social networking names that you have used in connection with your Franchised Business, and terminate all other references that indicate you are or ever were affiliated with Degree Wellness.
You agree to pay us within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts due to us are determined, all amounts owed to us or our affiliates which are then unpaid including, without limitation, any unpaid Initial Franchise Fee, any unpaid Continuing Franchise Fees, and any termination fee, damages, costs or expenses owed by you pursuant to Section 15.3, together with any audit costs and expenses owed by you pursuant to Section 13.2.
You agree that after the termination or expiration of the Franchise you will:
c. return to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or any Copyrightable Works or otherwise relating to a Degree Wellness franchise;
If you retain possession of the Premises, you agree to completely remove or modify, at your sole expense, any part of the interior and exterior decor that we deem necessary to disassociate the Premises with the image of a Degree Wellness franchise, including any signage, posters, furniture, equipment, products, or display units bearing the Marks.
If you do not take the actions we request within 10 days after notice from us, we have the right to enter the Premises and make the required changes at your expense, and you agree to reimburse us for those expenses on demand.
You irrevocably appoint Degree Wellness your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee loses the right to occupy the premises, it constitutes an event of default under the franchise agreement. This gives Degree Wellness the right to terminate the agreement, effective immediately upon delivering a termination notice to the franchisee. The termination is subject to any applicable cure rights provided by law or expressly stated in the agreement.
Upon termination, the franchisee must adhere to several obligations. They must immediately cease using any confidential information related to Degree Wellness and not use it for any business or purpose. The franchisee must also return all copies of the operations manual and any written confidential information provided by Degree Wellness. Furthermore, the franchisee must take necessary steps to remove their business listings from telephone directories and online platforms, disconnect or assign telephone numbers used for the franchised business to Degree Wellness, and terminate any references indicating affiliation with Degree Wellness.
Additionally, the franchisee is obligated to pay all outstanding amounts owed to Degree Wellness or its affiliates within five days of the termination date. This includes unpaid initial franchise fees, continuing franchise fees, termination fees, damages, costs, and any audit expenses. The franchisee must also cease using Degree Wellness's trademarks and copyrighted materials and take action to cancel any registrations related to the use of these marks. If the franchisee retains possession of the premises, they must remove or modify the interior and exterior decor to disassociate the premises from the Degree Wellness brand.
Degree Wellness also has the right to enter the premises and make necessary changes to disassociate it from the brand if the franchisee fails to do so within ten days of notice. The franchisee irrevocably appoints Degree Wellness as their attorney-in-fact to carry out these actions if they fail to comply. These measures ensure that upon termination, the franchisee completely separates from the Degree Wellness brand and ceases all operations associated with it, protecting Degree Wellness's brand and proprietary information.