Does Degree Wellness provide a cure period for violations of the franchise agreement, and can it be extended by law?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
15.1 Event of Default. Subject to applicable law, you will be deemed to be in default under this Agreement, and we will have the right to terminate this Agreement effective upon delivery of notice of termination to you, subject only to any right to cure to the extent expressly set forth below or mandated pursuant to applicable law, if:
B.
With respect to franchises governed by Minnesota law, Franchisor will comply with Minn.
Stat. § 80C.14, subds. 3, 4, and 5, which require, except in certain specified cases, that (1) Franchise Owner be given ninety (90) days' notice of termination (with sixty (60) days to cure) and one-hundred eighty (180) days' notice for non-renewal of the Agreement and (2) consent to the transfer of a franchise by Franchise Owner will not be unreasonably withheld whenever the franchisee to be substituted meets the present qualifications and standards required of the franchisees by us.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee is in default. Degree Wellness may provide an opportunity to cure the default, but this is only to the extent expressly outlined in the agreement or mandated by applicable law. This means that the specific cure period, if any, depends on the nature of the default and the laws governing the franchise agreement.
For franchisees in Minnesota, the FDD includes an addendum that provides specific protections. Except in certain specified cases, Degree Wellness must give the franchisee ninety (90) days' notice of termination, with sixty (60) days to cure the default. The addendum also states that Degree Wellness must provide one-hundred eighty (180) days' notice for non-renewal of the agreement.
For prospective franchisees, it is essential to understand the circumstances under which Degree Wellness can terminate the franchise agreement and whether there is a cure period. Franchisees should carefully review the franchise agreement and any state-specific addenda to understand their rights and obligations. If a specific cure period is not mentioned or is unclear, it is advisable to seek clarification from Degree Wellness regarding the possibility of a cure period and the conditions under which it would be granted.