Does the Maryland Amendment change the definition of 'Franchisee' in the Degree Wellness Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AMENDMENT TO DEVELOPMENT AGREEMENT ("Amendment") dated , is intended to be a part of, and by this reference is incorporated into that certain Development Agreement (the "Development Agreement") dated, by and between Degree Wellness Franchise, LLC ("Franchisor"), a Delaware limited liability company, with its principal office in Jacksonville, Florida, and ("you" or "Developer"). Defined terms contained in the Development Agreement shall have the identical meanings in this Amendment. Item 2 of the Development Agreement is supplemented by the following: Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. "In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens. IN WITNESS WHEREOF, the parties have executed this Amendment on the date first shown above. DEVELOPER DEGREE WELLNESS FRANCHISE, LLC
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the Maryland Amendment to the Development Agreement does not explicitly change the definition of 'Franchisee.' However, it does address the financial assurance required by the Maryland Securities Commissioner due to the franchisor's financial condition.
The Maryland Amendment states that all initial fees and payments owed by franchisees will be deferred until Degree Wellness completes its pre-opening obligations under the franchise agreement. Additionally, all development fees and initial payments by area developers will be deferred until the first franchise under the development agreement opens. This deferral of fees is a significant financial consideration for prospective franchisees in Maryland, as it reduces the initial financial burden.
Furthermore, the amendment includes provisions to protect the franchisee's rights under Maryland Franchise Law, ensuring that no statement or acknowledgment signed by the franchisee can waive claims under state franchise law or disclaim reliance on statements made by Degree Wellness. This offers additional legal protection to franchisees operating in Maryland. While the definition of 'Franchisee' remains unchanged, these financial and legal adjustments are important for those considering a Degree Wellness franchise in Maryland.