In the Degree Wellness Transfer Agreement, what is the significance of the "Effective Date"?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Development Agreement ("Agreement") made effective as of ("Effective Date") by and between Degree Wellness Franchise, LLC, a Delaware limited liability company with a business address at 200 Riverside Ave., Jacksonville, FL 32202 (the "Franchisor", "we", or "us",); and, a (resident of) (corporation organized in) (limited liability company organized (the "Developer", "you" or "your"). in) with a business address at
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the "Effective Date" signifies when the Development Agreement becomes active between Degree Wellness Franchise, LLC, and the developer. The Development Agreement itself is made effective as of the specified "Effective Date." This date marks the commencement of the contractual relationship and the beginning of the developer's rights and obligations under the agreement.
For a prospective Degree Wellness developer, the Effective Date is crucial because it sets the timeline for fulfilling various obligations outlined in the Development Agreement. These obligations could include site selection, securing financing, completing training, and meeting development schedules. Any delays in meeting these obligations after the Effective Date could potentially lead to breaches of contract and associated penalties.
Furthermore, the FDD mentions that the document is effective and may be used in certain states, where the document is filed, registered or exempt from registration, as of the Effective Date stated. Therefore, the "Effective Date" also determines when the franchise can be legally offered or sold in specific states, ensuring compliance with state franchise laws. This is particularly important for Degree Wellness as it operates in states with franchise registration requirements, such as California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.