Is an initial franchise fee payable upon renewal of a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, an initial franchise fee is not payable upon renewal of a franchise. However, to renew the franchise, the franchisee, along with their Principal Owners, must execute the then-current form of Franchise Agreement and any associated ancillary agreements. These agreements may be different from the original agreement, potentially including increased Continuing Franchise Fees and Fund contributions. The franchisee's right to renew is contingent upon accepting these new terms.
In addition to executing the new agreements, the franchisee must pay a renewal fee of $10,000 concurrently with signing the renewal Franchise Agreement. The franchisee and their Principal Owners must also provide general releases of any and all claims against Degree Wellness and its affiliates.
In summary, while Degree Wellness does not require a new initial franchise fee for renewal, franchisees should be aware that the terms of the renewal agreement can differ significantly from the original, potentially increasing costs. Franchisees must also budget for the $10,000 renewal fee and be prepared to release any claims against Degree Wellness.