What sections of the Degree Wellness Franchise Disclosure Document are amended to remove provisions regarding termination fees for Minnesota franchises?

According to Degree Wellness's 2025 Franchise Disclosure Document, for franchises governed by Minnesota law, Items 6 and 17 of the Disclosure Document, along with Section 15 of the Franchise Agreement, are amended to remove all provisions regarding termination fees. This amendment is due to Minn. Rule 2860.4400J, which prohibits termination fees.

For a prospective Degree Wellness franchisee in Minnesota, this means they will not be subject to termination fees if the franchise agreement is terminated. Termination fees are payments a franchisee may be required to pay to the franchisor upon termination of the franchise agreement, which can be a substantial financial burden.

This amendment provides a more favorable condition for franchisees in Minnesota compared to franchisees in other states where termination fees may be enforceable. It is important for prospective franchisees to carefully review the specific state addenda in the Franchise Disclosure Document to understand how state laws may modify the standard franchise agreement.