What must the landlord do if the Degree Wellness franchisee defaults on the lease?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
all letters and notices sent to Franchisee pertaining to the Lease and the Premises at the same time that such letters and notices are sent to Franchisee.
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- Franchisor will have the right to enter onto the Business premises at any time, to make any modification or alteration necessary to protect Degree Wellness System and Proprietary Marks or to cure any default under the Franchise Agreement or under the Lease, without being guilty of trespass or any other crime or tort, and the Landlord will not be responsible for any expense or damages arising from Franchisor's action in connection therewith.
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- In the event of Franchisee's default under the terms of the Lease, Landlord shall promptly deliver notice of such default to Franchisor and shall offer Franchisor the opportunity to cure the default and to assume the Lease in Franchisor's name. If Franchisor elects to cure the default and assume the Lease, Franchisor, within 10 days of its receipt of notice from Landlord, shall notify Landlord of its intent to cure such default and to assume the Lease.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, if a Degree Wellness franchisee defaults on their lease, the landlord must promptly notify Degree Wellness of the default and offer Degree Wellness the opportunity to cure the default and assume the lease.
If Degree Wellness chooses to cure the default and assume the lease, it must notify the landlord of its intent within 10 days of receiving the notice. Degree Wellness then has 30 days to cure the default. If the default cannot be reasonably cured within 30 days, Degree Wellness will commence and proceed to cure the default within a reasonable time.
If Degree Wellness elects to assume the lease, the landlord must recognize Degree Wellness as the tenant, and the franchisee will no longer have any rights under the lease. Degree Wellness is not liable under the lease unless and until the lease is assigned to or assumed by them.