Under what circumstances related to legal proceedings can either party terminate the Degree Wellness Services Agreement immediately?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Judicial or Administrative Proceedings. Either Party may terminate the Services Agreement, effective immediately, if (i) the other Party is named as a defendant in a criminal proceeding for a violation of HIPAA, the HIPAA Regulations, the HITECH Act, or other security or privacy laws or (ii) a finding or stipulation that the other Party has violated any standard or requirement of HIPAA, the HIPAA Regulations, the HITECH Act or other security or privacy laws is made in any administrative or civil proceeding in which the Party has been joined.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, either party can terminate the Services Agreement immediately under specific circumstances related to legal or administrative proceedings.
Specifically, either Degree Wellness or the franchisee can terminate the Services Agreement immediately if the other party is named as a defendant in a criminal proceeding for violating HIPAA, the HIPAA Regulations, the HITECH Act, or other security or privacy laws. This protects both parties from potential legal repercussions or reputational damage due to legal violations by the other.
Additionally, immediate termination is permitted if there is a finding or stipulation in any administrative or civil proceeding that the other party has violated any standard or requirement of HIPAA, the HIPAA Regulations, the HITECH Act, or other security or privacy laws. This clause ensures that Degree Wellness and its franchisees maintain compliance with healthcare regulations and avoid further legal issues. These termination rights exist regardless of any conflicting provisions in the Services Agreement.