If a Degree Wellness franchisee is not in compliance with the Franchise Agreement, what actions can Degree Wellness take?
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 the 2025 Degree Wellness Franchise Disclosure Document, if a franchisee fails to comply with the Franchise Agreement, Degree Wellness has the right to take several actions, at its discretion, until the franchisee corrects the issue or Degree Wellness terminates the agreement. These actions include denying access to the Degree Wellness website or Intranet, removing the franchise from the business locator page on the Degree Wellness website, and removing the franchise from lists for referred inquiries, Degree Wellness-related discounts from approved vendors, and participation in national or alliance programs.
Degree Wellness can implement these measures in addition to or instead of providing a notice of default or termination. The FDD clarifies that Degree Wellness withholding performance services does not constitute a breach of the agreement and will not be a defense against the enforcement of any provision, including the franchisee's obligation to pay continuing franchise fees.
Furthermore, Degree Wellness's decision to withhold performance rather than terminate the agreement does not waive its right to later terminate the agreement for the same or any other default, or to pursue other available remedies. This means Degree Wellness retains the flexibility to address non-compliance through various means, up to and including termination, without losing its rights.
This section of the FDD outlines the steps Degree Wellness can take when a franchisee is not meeting the requirements of the franchise agreement. It is important for a prospective franchisee to understand these potential actions and how they could impact their business operations if they fail to comply with the agreement.