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What topics are covered in the franchise and related agreements for a Degree Wellness Studio franchise?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

This table lists certain important provisions of the franchise and related agreements for your Studio franchise. You should read these provisions in the agreements attached to this Disclosure Document.

THE FRANCHISE RELATIONSHIP

Franchise Agreement

Provision Section in Franchise Agreement Summary
Agreement, we may terminate the
Franchise Agreement.
i. Your obligations on termination/ non-renewal Section 16 You must pay all amounts owed to us; refrain from using our Marks, return to us or destroy (as we specify) all customer lists, forms and materials bearing our Marks or relating to the franchise; de-identify the franchise premises; return the Operations Manual; comply with covenants against competition and the non solicitation, non-disparagement, and non-disclosure covenants in Section 9 of the Franchise Agreement; and cease using all confidential information.
You irrevocably appoint us your
attorney-in-fact-
to de-identify your
franchise premises and enforce your
requirement to discontinue use of the
Marks if you do not perform these
obligations within 10 days of the
termination of your Agreement.
You
must
also
(1)
execute
any
documents
and
take
any
steps
necessary to delete your listings from
classified
telephone
directories,
disconnect, or, at our option, assign to
us all telephone numbers that have
been
used
in
your
Franchised
Business, assign to
us any URLs,
domain names, and social media and
social networking names that you
have used in connection with your
Franchised Business, and terminate
all other references that indicate you
are or ever were affiliated with us, and
(2) give us a final accounting for your
Studio, and you must maintain all
accounts and records for your Studio
for a period of not less than seven
years after final payment of any
amounts you owe to us, our affiliates,
and/or related persons, but you may
not
sell,
disclose,
or
otherwise
Provision Section in Franchise Agreement Summary
----------------------------------------------- -------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
transfer
any
of
the
information
contained
in
those
accounts
and
records (other than patient records
needed for their continuing care) to,
or
for
use
by,
any
competitive
business.
j. Assignment of contract by us Section 14.3 Fully transferable by us.
k. "Transfer" by you-defined Section 14 Transfer includes any voluntary, involuntary, direct or indirect assignment, sale, gift, exchange, grant of a security interest or change of ownership in the Franchise Agreement, the franchise or its assets, or any interest in the franchise.
l. Our approval of transfer by you Section 14.4 You may not transfer the Franchise Agreement, the franchise or its assets or any interest in the franchise without our approval. We will not unreasonably withhold approval if you are in full compliance with the Franchise Agreement.
m. Conditions for our approval of transfer Section 14.5 If you propose to transfer the Franchise Agreement, the franchise or its assets, or any interest in the franchise, or if any of your Principal Owners proposes to transfer a controlling interest in you or make a transfer that is one of a series of transfers which taken together would constitute the transfer of a controlling interest, then you must apply to us for approval of such transfer and sign such forms and procedures as we have in effect at that time, the person or entity to whom you wish to make the transfer must apply to us for acceptance as a franchisee, and you must submit to us all of the information and documentation required for us to evaluate the proposed transfer. Also, the new owner must have sufficient business experience,
Provision Section in Franchise Agreement Summary
--------------------------------------------------------------------------------- -------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
interest
within
12
months;
all
transfers are subject to provisions in
Franchise
Agreement
regulating
transfers.
q. Non-competition covenants during the term of the franchise Section 9.3 and 17.8 Neither you, your Principal Owners, General Managers, nor any immediate family members of you or your Principal Owners may perform services for or have any interest in any competitive business.
r. Non-competition covenants after Not applicable Not applicable.
the franchise is terminated or
expires
s. Modification of the agreement Section 20 No
modifications
to
Franchise
Agreement unless you and we agree
in writing; we may amend Operations
Manual at any time.
t. Integration/merger clause Section 20 Only
the
Franchise
Agreement
applies (subject to state and federal
law); all other agreements or promises
not enforceable, except that nothing
in the Franchise Agreement will
operate to waive or disclaim your
right to rely on the representations
and claims asserted in this FDD.
u. Dispute resolution by arbitration or mediation Section 17.9 Except for certain claims, we and you must arbitrate all disputes in Duvall, Florida (subject to state law) before a single arbitrator with the American Arbitration Association.
Except as we elect to enforce the
Franchise
Agreement
or
to
seek
temporary or permanent injunctive
relief, before either party commences
an arbitration, the parties agree that,
as a condition precedent to the filing
or commencement of any arbitration,
they
will attempt to resolve any
dispute through internal mediation
between the partiesto be conducted in
a mutually agreeable location, or if no
such location is agreed upon within
10 days after a request for mediation,

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, Item 17 provides a table summarizing important provisions within the franchise and related agreements. These provisions address various aspects of the franchise relationship, including obligations upon termination or non-renewal, assignment of the contract, conditions for transfer approval, non-competition covenants, modifications to the agreement, and dispute resolution.

Specifically, the franchise agreement outlines the franchisee's responsibilities when the agreement ends, such as paying outstanding amounts, ceasing the use of Degree Wellness's marks, and returning confidential information. It also covers the franchisor's ability to transfer the agreement and the conditions under which a franchisee can transfer their interest, requiring Degree Wellness's approval.

Furthermore, the agreement includes non-competition clauses that restrict the franchisee and related parties from engaging in competitive businesses during the franchise term. It also specifies that modifications to the franchise agreement must be in writing and agreed upon by both parties. Finally, it details the process for dispute resolution, which involves mandatory arbitration in Duvall, Florida, with the American Arbitration Association, preceded by internal mediation efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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