Under what circumstances will Florida franchise law apply to the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AMENDMENT TO DEVELOPMENT AGREEMENT ("Amendment") dated is intended to be a part of, and by this reference is incorporated into that certain Development Agreement (the "Development Agreement") dated by and between Degree Wellness Franchise, LLC ("Franchisor"), a Delaware limited liability company, with its principal office in Jacksonville, Florida, and ("you" or "Developer"). Defined terms contained in the Development Agreement shall have the identical meanings in this Amendment. A. Section 6 of the Franchise Agreement agreement opens. above. is amended to provide that all development fees and initial payments by area developers shall be deferred until the first franchise under the development IN WITNESS WHEREOF, the parties have executed this Amendment on the date first shown FRANCHISE, LLC DEVELOPER DEGREE WELLNESS
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness FDD, Degree Wellness Franchise, LLC has its principal office located in Jacksonville, Florida. An amendment to the development agreement specifies that Degree Wellness Franchise, LLC is a Delaware limited liability company with its principal office in Jacksonville, Florida. This suggests that Florida franchise laws would likely apply to the Degree Wellness agreement because the franchisor's principal place of business is located there. This is a common situation in franchising, where the state in which the franchisor is based often has jurisdiction over franchise agreements.
However, the FDD also lists states that have franchise laws requiring registration or filing of the Franchise Disclosure Document, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This indicates that franchise laws in these states would also apply if a Degree Wellness franchise is located within their borders. The interplay between Florida law (due to the franchisor's location) and the franchise laws of other states (where the franchise outlets operate) would determine the specific legal requirements governing the franchise relationship.
For a prospective Degree Wellness franchisee, this means understanding that both Florida franchise laws and the laws of the state where they plan to operate their franchise will be relevant. They should consult with a franchise attorney to ensure they are compliant with all applicable regulations. The FDD does not explicitly detail how conflicts between different state laws would be resolved, so it's important for franchisees to seek legal counsel to navigate these complexities.