Are there any exceptions to the requirement of compliance for Degree Wellness franchise renewal?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| c. Requirements for you to renew or extend | Section 2.4 | The term "renewal" means that you will be granted a franchise for 1 additional term, equal in length to the initial term, subject to your compliance with all the terms of the Franchise Agreement and all other agreements between you and us, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, to renew a franchise for an additional 10-year term, a franchisee must be in compliance with all the terms of the Franchise Agreement and any other agreements with Degree Wellness.
Specifically, at least 6 months before the franchise expiration, Degree Wellness will notify the franchisee whether they appear eligible for renewal or provide a notice of deficiencies. If the franchisee seems eligible, Degree Wellness will request a notice of intent to renew within a specific timeframe. To finalize the renewal, the franchisee must maintain possession of the premises or obtain suitable substitute premises, correct any operational deficiencies identified by Degree Wellness, sign the then-current franchise agreement and ancillary documents, pay a renewal fee (as detailed in Item 6), and sign a general release of claims against Degree Wellness and its affiliates.
It's important to note that Degree Wellness may present a new franchise agreement with materially different terms and conditions, and the franchisee's renewal is contingent upon accepting these new terms. Failing to meet these conditions means the franchisee will not be able to renew their Degree Wellness franchise.