What are the two primary conditions that a Degree Wellness franchisee must meet to be eligible for renewal of the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
2.4 Renewal of Franchise.
- a. Franchise Owner's Right to Renew. Subject to the provisions of subparagraph 2.4b below, and (i) if you have complied with all provisions of this Agreement and all other agreements between us, including the Operations Manual, as of the expiration of the Initial Term, and (ii) if you refurbish and decorate the Premises, replace fixtures, furnishings, wall decor, furniture, equipment, and signs, and otherwise modify the Franchise in compliance with specifications and standards then applicable under new or renewal franchises for Studio franchises, you will have the right to renew the Franchise for additional terms equal in length to the Initial Term.
- i. At least 6 months before the expiration of the Franchise, we will notify you as to whether you appear eligible to renew the Franchise or, if applicable, we will provide you with a notice of deficiencies pursuant to subparagraph 2.4b below.
- ii. If you appear to be eligible for renewal, we will ask you to provide us with notice of your intent to renew within a specific time period after receipt of our notice.
- iii. If you give us timely notice of your desire to renew the Franchise, we will provide you with our then-current Franchise Disclosure Document and a timetable for the renewal process.
- iv. Following an appropriate review period, and subject to your continued compliance with this Agreement and satisfaction of other terms of eligibility for renewal, you and we will enter into the documentation described in subparagraph 2.4c below.
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 the right to renew their franchise for additional terms equal in length to the initial term if they meet certain conditions. The first condition is that the franchisee must have complied with all provisions of the Franchise Agreement and all other agreements with Degree Wellness, including the Operations Manual, as of the expiration of the initial term.
The second condition is that the franchisee must refurbish and decorate the premises, replace fixtures, furnishings, wall decor, furniture, equipment, and signs, and otherwise modify the franchise in compliance with specifications and standards then applicable under new or renewal franchises for Studio franchises.
At least six months before the expiration of the franchise term, Degree Wellness will notify the franchisee whether they appear eligible to renew the franchise or provide a notice of deficiencies. If the franchisee appears eligible, Degree Wellness will request notice of intent to renew. If the franchisee provides timely notice, Degree Wellness will provide the current Franchise Disclosure Document and a timetable for the renewal process. Renewal is contingent upon continued compliance with the agreement and satisfaction of other eligibility terms.