What is the Degree Wellness Licensed Provider's obligation regarding maintaining their license to provide Studio Services?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Licensed Provider is and will be duly licensed and in good standing to provide the Studio Services in the state in which the Premises is located, and will remain licensed and in good standing at all times during the Agreement Term;
- (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, the Licensed Provider must be in good standing to provide Studio Services in the state where the Premises is located. The Licensed Provider must also remain licensed and in good standing at all times during the Agreement Term.
This means that a prospective Degree Wellness Licensed Provider must ensure they meet all state licensing requirements before beginning operations and must maintain that license throughout the term of their agreement. Failure to maintain proper licensure could result in the inability to provide services and a potential breach of the agreement.
Additionally, the Licensed Provider is required to disclose certain events to Management Company in writing within 5 days. This includes 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.