What are some of the specific actions Degree Wellness may take if a franchisee is not in compliance with the Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are not in such compliance, we may, in our sole judgment, do any or all of the following until you fully correct the breach or default or Degree Wellness terminates this Agreement:
a. deny you access to the Degree Wellness website or Intranet;
b. remove your Franchised Business from the Franchised Business locator page and/or remove your interior pages, on the Degree Wellness Website;
c. remove your Franchised Business from the list of Franchised Businesses to which inquiries are referred;
d. remove your Franchised Business from the list of Franchised Businesses that are entitled to Degree Wellness-related discounts from approved vendors; and/or
e. remove your Franchised Business from the list of Franchised Businesses that are approved to participate in national or other alliance programs.
Degree Wellness may take any or all of these actions in addition to or instead of giving you notice of default and/or termination under this Agreement. You acknowledge and agree that Degree Wellness's withholding of performance services in accordance with this Section 15.4 will not constitute a breach of this Agreement and/or a defense to the enforcement by us of any provision of this Agreement, including the right to receive payment of Continuing Franchise Fees as provided in Section 6.2. You also acknowledge and agree that, should we choose to withhold performance rather than terminate this Agreement, Degree Wellness's failure to exercise its right to terminate this Agreement will in no way constitute a waiver of its subsequent right to terminate this Agreement for the specified default or for any other default or to exercise any other remedies available to us under this Agreement, at law, or in equity.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee fails to comply with the Franchise Agreement, Degree Wellness has the right to take several actions, at its discretion, until the franchisee corrects the breach or Degree Wellness terminates the agreement. These actions include denying the franchisee access to the Degree Wellness website or Intranet, removing the franchised business from the business locator page on the Degree Wellness website, and removing the business from the list of franchised businesses to which inquiries are referred. Degree Wellness can also remove the franchise from the list of businesses entitled to Degree Wellness-related discounts from approved vendors, and from the list of franchises approved to participate in national or other alliance programs.
Degree Wellness may implement these measures in addition to or instead of providing a formal notice of default or termination. The FDD emphasizes that Degree Wellness's decision to withhold performance services does not constitute a breach of the agreement and will not be a valid defense against the enforcement of any provision, including the franchisee's obligation to pay continuing franchise fees.
Furthermore, Degree Wellness's choice to withhold performance rather than terminate the agreement does not waive its right to later terminate the agreement for the same default or any other default, or to pursue other available remedies. This means that Degree Wellness retains the flexibility to address non-compliance through various means, ranging from restricting access and benefits to ultimately terminating the franchise agreement, while still enforcing the franchisee's financial obligations.