If a Degree Wellness franchisee is not in compliance with all agreements, can they still renew their franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of franchise term | Section 2.1 | 10 years |
| b. Renewal or extension of the term | Section 2.4 | Additional terms of 10 years |
| c. Requirements for you to renew or extend | Section 2.4 | The term "renewal" means that you will be granted a franchise for 1 additional term, equal in length to the initial term, subject to your compliance with all the terms of the Franchise Agreement and all other agreements between you and us, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee's compliance with all agreements is a prerequisite for renewal. The standard franchise agreement has an initial term of 10 years, with an option to renew for an additional term of 10 years. However, this renewal is contingent upon the franchisee adhering to all terms outlined in the Franchise Agreement and any other agreements with Degree Wellness.
This condition means that if a Degree Wellness franchisee has failed to meet their obligations—whether financial, operational, or otherwise—during the initial term, they may be denied the opportunity to renew their franchise. Degree Wellness retains the right to assess the franchisee's performance and adherence to the agreements before granting a renewal.
For a prospective Degree Wellness franchisee, this underscores the importance of understanding and diligently fulfilling all obligations detailed in the Franchise Agreement and related documents. Failure to do so not only risks potential termination during the initial term but also jeopardizes the opportunity to extend the franchise and continue operating under the Degree Wellness brand beyond the initial 10-year period. This is a fairly standard clause in most franchise agreements.