What happens if a Degree Wellness franchisee repeatedly fails to comply with the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not in such compliance, we may, in our sole judgment, do any or all of the following until you fully correct the breach or default or Degree Wellness terminates this Agreement:
a. deny you access to the Degree Wellness website or Intranet;
b. remove your Franchised Business from the Franchised Business locator page and/or remove your interior pages, on the Degree Wellness Website;
c. remove your Franchised Business from the list of Franchised Businesses to which inquiries are referred;
d. remove your Franchised Business from the list of Franchised Businesses that are entitled to Degree Wellness-related discounts from approved vendors; and/or
e. remove your Franchised Business from the list of Franchised Businesses that are approved to participate in national or other alliance programs.
Degree Wellness may take any or all of these actions in addition to or instead of giving you notice of default and/or termination under this Agreement. You acknowledge and agree that Degree Wellness's withholding of performance services in accordance with this Section 15.4 will not constitute a breach of this Agreement and/or a defense to the enforcement by us of any provision of this Agreement, including the right to receive payment of Continuing Franchise Fees as provided in Section 6.2. You also acknowledge and agree that, should we choose to withhold performance rather than terminate this Agreement, Degree Wellness's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.
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 fails to comply with the franchise agreement, Degree Wellness has several options. Degree Wellness may choose to deny the franchisee access to the Degree Wellness website or Intranet, remove the franchise from the business locator page on the Degree Wellness Website, remove the franchise from the list of businesses to which inquiries are referred, remove the franchise from the list of businesses entitled to Degree Wellness-related discounts from approved vendors, and/or remove the franchise from the list of franchises approved to participate in national or other alliance programs.
Degree Wellness can take these actions until the franchisee fully corrects the breach or default, or until Degree Wellness terminates the agreement. The document clarifies that Degree Wellness can take any or all of these actions instead of or in addition to giving a notice of default or termination.
The FDD states that withholding performance services will not be considered a breach of the agreement by Degree Wellness, nor will it be a defense against the enforcement of any provision of the agreement, including the right to receive payment of Continuing Franchise Fees. Furthermore, if Degree Wellness chooses to withhold performance rather than terminate the agreement, this does not waive their right to terminate the agreement later for the same or any other default, or to exercise any other remedies available to them under the agreement, at law, or in equity.