What releases must a Degree Wellness franchisee and their Principal Owners execute to renew the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
fied. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, to renew the franchise, both the franchisee and their Principal Owners must execute general releases. These releases must be in a form satisfactory to Degree Wellness and cover any and all claims against Degree Wellness, its affiliates, and their respective owners, officers, directors, employees, and agents.
This requirement means that as a condition of renewing their franchise agreement, franchisees and their Principal Owners must waive any existing or potential legal claims against Degree Wellness. This is a significant commitment, as it prevents the franchisee from pursuing legal action against the franchisor, even for issues that may arise from the franchise relationship.
In addition to executing these releases, the franchisee must also execute the form of Franchise Agreement and any ancillary agreements that Degree Wellness is then customarily using for franchise renewals. The franchisee must also pay a renewal fee of $10,000. Given the potentially far-reaching implications of signing a general release, a prospective Degree Wellness franchisee should carefully review the release with a legal professional to fully understand the rights they are waiving.