factual

If a material provision of the Degree Wellness agreement is stricken or declared invalid, what must the parties do?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

  • b. If any lawful requirement or court order of any jurisdiction (1) requires a greater advance notice of the termination or non-renewal of this Agreement than is required under this Agreement, or the taking of some other action which is not required by this Agreement, or (2) makes any provision of this Agreement or any specification, program, standard, or operating procedure we prescribed invalid or unenforceable, then the advance notice and/or other action required or revision of the specification,

program, standard, or operating procedure will be substituted for the comparable provisions of this Agreement in order to make the modified provisions enforceable to the greatest extent possible. You agree to be bound by the modification to the greatest extent lawfully permitted.

Source: Item 23 — Receipts (FDD pages 66–257)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, if any lawful requirement or court order makes any provision of the agreement invalid or unenforceable, then the advance notice and/or other action required or revision of the specification, program, standard, or operating procedure will be substituted for the comparable provisions of this Agreement in order to make the modified provisions enforceable to the greatest extent possible. The franchisee agrees to be bound by the modification to the greatest extent lawfully permitted.

This means that if a court or regulator finds part of the Degree Wellness franchise agreement to be unenforceable, the parties will attempt to modify the agreement to make it enforceable while still reflecting the original intent. This could involve changing the scope of a non-compete clause, adjusting termination notice periods, or revising operational procedures. The franchisee is obligated to accept these modifications as long as they are legally permissible.

This clause ensures that the Degree Wellness franchise agreement remains as effective as possible even if certain parts are challenged. It reflects a common practice in franchising where agreements are designed to be adaptable to changing legal landscapes. However, it also places the onus on the franchisee to accept modifications, which could potentially alter the terms of their franchise in ways they did not initially anticipate. Franchisees should seek legal counsel to understand the implications of such modifications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.