What is the Degree Wellness Licensed Provider's obligation regarding disclosing claims of malpractice?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Licensed Provider shall immediately disclose to Management Company in writing as soon as is possible after, but in any case within 5 days of, (1) the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit (including regulatory boards or professional groups), that may adversely affect Licensed Provider and/or the Studio's operation, financial condition, or reputation, including, without limitation, any and all claims of malpractice brought against Licensed Provider or any person affiliated with Licensed Provider, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) Licensed Provider's receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider must disclose certain legal and regulatory matters to Management Company. Specifically, the Licensed Provider is obligated to inform Management Company in writing about any actions, suits, proceedings, orders, writs, injunctions, awards, or decrees from any court, agency, or governmental unit that could negatively impact the Licensed Provider, the Studio's operations, financial condition, or reputation. This includes, without limitation, any and all claims of malpractice brought against Licensed Provider or any person affiliated with Licensed Provider, regardless of the nature of the claim, anticipated outcome or remedies sought.
This disclosure must be made as soon as possible, but no later than 5 days after the commencement of any such action or the issuance of any relevant order. The Licensed Provider must also disclose any notice of violation of any law, ordinance, or regulation relating to health or safety within the same timeframe. This requirement ensures that Management Company is promptly informed of any potential legal or regulatory issues that could affect the Degree Wellness business or brand.
For a prospective Degree Wellness Licensed Provider, this means maintaining diligent awareness of any legal or regulatory actions and adhering to the strict reporting timeline. Failure to disclose such information within the specified timeframe could potentially lead to breaches of the agreement and possible repercussions. This obligation highlights the importance of maintaining open communication and transparency with Management Company regarding any legal or regulatory challenges that may arise.