What is the obligation of the parties if the Degree Wellness agreement is believed to violate applicable law?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Company's responsibilities are subject to change to comply with applicable law. Specifically, the FDD states that the phrase "Management Company Services" includes certain services, except to the extent any of the foregoing would constitute Studio Services and is subject to change in order to comply with applicable law.

This means that Degree Wellness retains the flexibility to modify the services provided by the Management Company to ensure adherence to legal requirements. This could involve altering the scope, nature, or delivery of these services. For a prospective franchisee, this implies that the initial understanding of the Management Company's role and responsibilities, as outlined in the agreement, may evolve over time due to legal considerations.

It is important for a potential Degree Wellness franchisee to stay informed about any changes to the Management Company Services and to understand the reasons behind those changes. This can be achieved through regular communication with Degree Wellness and the Management Company, as well as seeking legal counsel to interpret the implications of any modifications. While the FDD indicates that changes may occur to comply with the law, it does not specify the exact process for implementing these changes or the franchisee's rights in such situations. Therefore, it is advisable to seek clarification from Degree Wellness regarding the procedures for modifying services and the franchisee's recourse in case of disagreements.