Can Degree Wellness terminate the franchise agreement if the franchisee fails to successfully complete subsequent mandatory training?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has the right to terminate the franchise agreement if a franchisee (or any individuals required to attend) fails to attend and/or successfully complete any required initial training or subsequent mandatory training. This is considered an event of default under the agreement, allowing Degree Wellness to terminate the agreement effective upon delivery of a termination notice. However, this is subject to any right to cure the default, if expressly set forth in the agreement or mandated by applicable law.

This means that as a Degree Wellness franchisee, you must ensure that you and any required personnel attend and successfully complete all mandatory training programs, both initial and ongoing. Failure to do so could result in the termination of your franchise agreement, leading to a loss of your business and the rights associated with it. The FDD specifies that termination is effective upon notice, though a cure period might be available depending on the specific circumstances or legal requirements.

Franchisors commonly require franchisees and their staff to undergo training to ensure consistent brand standards and service quality. The ability to terminate for failure to complete training is not unusual, as it protects the brand's reputation and operational integrity. However, the availability of a cure period, allowing the franchisee to rectify the deficiency, can vary. Prospective franchisees should clarify the conditions under which termination can occur and whether a cure period is provided, as well as the specific requirements for initial and ongoing training programs.

In addition to potential termination, Degree Wellness outlines other actions they may take if a franchisee is not in compliance with the agreement. These include denying access to the Degree Wellness website or Intranet, removing the franchised business from the business locator page on the Degree Wellness Website, removing the franchised business from the list of franchised businesses to which inquiries are referred, removing the franchised business from the list of franchised businesses that are entitled to Degree Wellness-related discounts from approved vendors, and/or removing the 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.