factual

Is Degree Wellness obligated to provide guidance and assistance to franchisees?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

r of the Term of this Agreement); and

  • c. all costs and expenses, including attorneys' fees, incurred in connection with the termination, collection of the termination fee and/or damages, and audit fees and expenses.

  • 15.4 Withholding of Performance. Degree Wellness will perform its obligations under this Agreement if you are in full compliance with all or your duties and obligations to Degree Wellness under this Agreement and the Operations Manual (including any documents incorporated therein). If you are not in such compliance, we may, in our sole judgment, do any or all of the following until you fully correct the breach or default or Degree Wellness terminates this Agreement:

    • a. deny you access to the Degree Wellness website or Intranet;
  • b. remove your Franchised Business from the Franchised Business locator page and/or remove your interior pages, on the Degree Wellness Website;

  • c. remove your Franchised Business from the list of Franchised Businesses to which inquiries are referred;

  • d. remove your Franchised Business from the list of Franchised Businesses that are entitled to Degree Wellness-related discounts from approved vendors; and/or

  • e. remove your Franchised Business from the list of Franchised Businesses that are approved to participate in national or other alliance programs.

Degree Wellness may take any or all of these actions in addition to or instead of giving you notice of default and/or termination under this Agreement. You acknowledge and agree that Degree Wellness's withholding of performance services in accordance with this Section 15.4 will not constitute a breach of this Agreement and/or a defense to the enforcement by us of any provision of this Agreement, including the right to receive payment of Continuing Franchise Fees as provided in Section 6.2. You also acknowledge and agree that, should we choose to withhold performance rather than terminate this Agreement, Degree Wellness's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.

16. RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISE OWNER UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.

  • 16.1 Payment of Amounts Owed to Degree Wellness. You agree to pay us within five (5) days after the effective date of termination or expiration of the Franchise, or any later date that the amounts due to us are determined, all amounts owed to us or our affiliates which are then unpaid including, without limitation, any unpaid Initial Franchise Fee, any unpaid Continuing Franchise Fees, and any termination fee, damages, costs or expenses owed by you pursuant to Section 15.3, together with any audit costs and expenses owed by you pursuant to Section 13.2.
  • 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Studio Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service marks. You agree that after the termination or expiration of the Franchise you will:
  • a. not directly or indirectly at any time identify any business with which you are associated as a current or former Degree Wellness franchise or franchisee;
  • b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Works in any manner or for any purpose, or use for any purpose any trademark or other commercial symbol that suggests or indicates an association with us;
  • c.

Source: Item 23 — Receipts (FDD pages 66–257)

What This Means (2025 FDD)

According to the 2025 Degree Wellness Franchise Disclosure Document, Degree Wellness offers support to franchisees but also outlines specific actions it may take if a franchisee fails to comply with the franchise agreement. Degree Wellness may deny access to the website or intranet, remove the franchised business from the locator page on the Degree Wellness Website, remove the franchise from lists of businesses for inquiry referrals or discount eligibility from approved vendors, and remove the franchise from participation in national or alliance programs.

Degree Wellness may take these actions until the franchisee corrects the breach or default, or until Degree Wellness terminates the agreement. The document specifies that withholding these performance services does not constitute a breach of the agreement by Degree Wellness, nor does it waive Degree Wellness's right to terminate the agreement later for the same or any other default.

Furthermore, Degree Wellness emphasizes that the services they offer do not include customer or patient referrals. However, Degree Wellness will establish, maintain, and administer an advertising fund. Franchisees are required to contribute 1% of their gross revenues to this fund, with the possibility of it increasing to a maximum of 2%. Degree Wellness retains sole discretion over brand development initiatives funded this way.

In the future, Degree Wellness may introduce a marketing program involving local client placement for marketing activities, which would be mandatory for all franchisees, subject to a reasonable fee determined by Degree Wellness. Franchisees are also obligated to pay a monthly technology fee for website and technology-related services, as well as fees for required human resources and payroll services. Degree Wellness may also offer additional optional services, products, or programs for an additional fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.