Under the Degree Wellness agreement, what is the Licensed Provider's obligation regarding agreements that might prevent them from fulfilling their duties?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If Licensed Provider is an entity, this Agreement has been authorized by all necessary corporate action of Licensed Provider, and is a valid and binding agreement of Licensed Provider enforceable in accordance with its terms, and the individual signing on behalf of Licensed Provider is duly authorized to enter into and executed this Agreement; and
- (c) Licensed Provider shall immediately disclose to Management Company in writing as soon as is possible after, but in any case within 5 days of, (1) the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit (including regulatory boards or professional groups), that may adversely affect Licensed Provider and/or the Studio's operation, financial condition, or reputation, including, without limitation, any and all claims of malpractice brought against Licensed Provider or any person affiliated with Licensed Provider, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) Licensed Provider's receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if the Licensed Provider is an entity, they must ensure that the agreement has been authorized by all necessary corporate action and that the individual signing on behalf of the Licensed Provider is duly authorized to enter into and execute the agreement. This ensures the agreement is valid, binding, and enforceable.
Furthermore, the Licensed Provider is obligated to immediately disclose to the Management Company in writing, within 5 days, any action, suit, proceeding, order, writ, injunction, award, or decree from any court, agency, or governmental unit that may adversely affect the Licensed Provider and/or the Studio's operation, financial condition, or reputation. This includes any malpractice claims brought against the Licensed Provider or any affiliated person, regardless of the claim's nature, anticipated outcome, or remedies sought. The Licensed Provider must also disclose any notice of violation of any law, ordinance, or regulation relating to health or safety.
These obligations ensure that Degree Wellness and the Management Company are promptly informed of any potential legal or regulatory issues that could impact the business. This allows them to take appropriate action to protect their interests and maintain the reputation and financial stability of the Degree Wellness franchise.