What representation does the Management Company make regarding the validity of the agreement with Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The Franchise Agreement is in full force and effect and Degree Wellness has been provided with a true, correct and complete copy of this Agreement and has approved it as to form and content (provided, however, that Licensed Provider and Management Company acknowledge and agree that such consent does not mean Degree Wellness has reviewed or approved the legality of this Agreement with respect to applicable state or local laws governing Licensed Provider or agreements of this nature).
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Company represents the validity and approval of the agreement with Degree Wellness. Specifically, the Management Company warrants that the Franchise Agreement is in full force and effect. Furthermore, Degree Wellness has been provided with a true, correct, and complete copy of the agreement and has approved it regarding its form and content.
However, the Management Company clarifies that Degree Wellness's consent to the agreement's form and content does not constitute a review or approval of the agreement's legality. This disclaimer is particularly relevant concerning state or local laws governing the Licensed Provider or agreements of this nature. This means that while Degree Wellness has signed off on the agreement's structure and what it contains, they haven't necessarily vetted it for compliance with all applicable laws affecting the franchisee's specific situation.
This distinction is important for prospective Degree Wellness franchisees. It highlights that while Degree Wellness approves the overall framework of the agreement, the responsibility for ensuring compliance with local and state laws ultimately falls on the franchisee. Therefore, it is crucial for potential franchisees to seek independent legal counsel to review the agreement and ensure it aligns with all applicable regulations in their area.