What is the timeframe after all appeals have been exhausted that a Degree Wellness franchisee has to satisfy any judgment rendered against them before it becomes an event of default?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. you are adjudged a bankrupt, become insolvent or make a general assignment for the benefit of creditors, or you fail to satisfy any judgment rendered against you for a period of 30 days after all appeals have been exhausted;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee has 30 days to satisfy any judgment rendered against them after all appeals have been exhausted. Failure to do so constitutes an event of default under the franchise agreement, potentially leading to termination of the agreement by Degree Wellness.
This clause protects Degree Wellness from franchisees who may be facing severe financial difficulties, which could negatively impact the brand's reputation and financial stability. By including this default provision, Degree Wellness maintains the right to terminate the franchise agreement if a franchisee's financial instability poses a risk to the entire franchise system.
For a prospective franchisee, this means it is crucial to maintain financial stability and address any legal judgments promptly. The 30-day window to satisfy a judgment after all appeals are exhausted is a relatively short period, so franchisees must have contingency plans in place to handle potential legal or financial challenges. Understanding this clause is essential for any potential Degree Wellness franchisee to assess the risks and responsibilities associated with the franchise agreement.