What is the minimum amount of liquidated damages Degree Wellness would suffer for a breach of Section 9 of the agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees agree that precise damages are difficult to calculate for a breach of Section 9 of the agreement. Therefore, if a franchisee breaches or violates Section 9 of the agreement, it is agreed that Degree Wellness would suffer actual damages of at least $50,000.

In addition to these liquidated damages, the franchisee must also pay Degree Wellness any and all actual damages exceeding the $50,000, along with all attorneys' fees incurred by Degree Wellness as a direct or indirect result of any breach or violation of the agreement. This means that while $50,000 is the floor for damages related to a breach of Section 9, the franchisee could be liable for significantly more depending on the actual damages and legal costs incurred by Degree Wellness.

This clause highlights the importance of understanding and adhering to the requirements outlined in Section 9 of the Degree Wellness franchise agreement. Prospective franchisees should carefully review Section 9 with legal counsel to fully understand their obligations and the potential financial consequences of a breach. The liquidated damages provision, combined with the potential for additional actual damages and legal fees, represents a significant financial risk for franchisees who fail to comply with Section 9.