What is the timeframe for satisfying a judgment against a Degree Wellness Licensed Provider before it constitutes a default?

According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider has 30 days to satisfy any judgment rendered against it after all appeals have been exhausted. Failure to do so constitutes a default under the agreement. If the Licensed Provider is an entity, this condition also applies to any of its owners.

This means that if a Degree Wellness Licensed Provider loses a lawsuit and is ordered to pay a judgment, they must make sure that the judgment is satisfied within 30 days after all possible appeals have been completed. If they fail to do so, Degree Wellness has grounds to terminate the agreement. This could have significant financial and operational consequences for the franchisee, including loss of the business.

This clause is fairly standard in franchise agreements, as franchisors need to protect their brand and reputation. A franchisee's inability to satisfy a judgment could indicate financial instability, which could negatively impact the entire franchise system. Prospective Degree Wellness franchisees should be aware of this requirement and ensure they have adequate financial resources and insurance coverage to address potential legal liabilities.