What section of the Degree Wellness agreement is referenced in the liquidated damages clause?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that precise damages are difficult to calculate for a breach or violation of the provisions of Section 9 of this Agreement. Therefore, if you breach or violate Section 9 of this Agreement it is agreed that we would suffer actual damages of at least Fifty Thousand Dollars. In addition to any liquidated damages permitted herein, you must pay to us any and all actual damages in excess of the liquidated amount, plus all attorneys' fees incurred by us as a direct or indirect result of any breach or violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the liquidated damages clause references Section 9 of the franchise agreement. The document states that Degree Wellness finds it difficult to calculate precise damages for a breach or violation of Section 9. Therefore, if a franchisee breaches or violates Section 9, it is agreed that Degree Wellness would suffer actual damages of at least $50,000.
In addition to these liquidated damages, the franchisee must also pay any actual damages exceeding the $50,000, along with all attorney's fees incurred by Degree Wellness as a direct or indirect result of the breach or violation. This means that a franchisee could potentially be liable for significantly more than $50,000 if Degree Wellness's actual damages and legal fees exceed that amount.
This clause highlights the importance of understanding Section 9 of the Degree Wellness franchise agreement, as any breach could result in substantial financial penalties for the franchisee. Prospective franchisees should carefully review Section 9 with their legal counsel to fully understand their obligations and the potential consequences of non-compliance.