Under what circumstances can Degree Wellness terminate the Development Agreement due to curable defaults?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness can terminate the Development Agreement if the developer fails to meet their development obligations under the agreement. This falls under the definition of "Cause" related to curable defaults. Additionally, Degree Wellness can terminate the Development Agreement if the developer fails to cure any default, including monetary defaults, within 30 days of receiving notice.

This means that if a Degree Wellness developer does not fulfill the milestones and requirements outlined in the Development Agreement, such as site selection, studio build-out, or meeting specified opening timelines, Degree Wellness has grounds for termination. However, the developer typically has a 30-day window after receiving written notice to rectify the situation and avoid termination. This cure period provides an opportunity for the developer to address the issues and demonstrate their commitment to fulfilling their obligations.

It's important to note that the specific terms and conditions related to development obligations and cure periods are detailed in Section 6.2 of the Development Agreement. Prospective Degree Wellness developers should carefully review this section to fully understand their responsibilities and the potential consequences of failing to meet them. Understanding these terms is crucial for managing risk and ensuring a successful development process.

The FDD also indicates that the Development Agreement can only be modified through a written agreement signed by both parties, as stated in Section 27. This reinforces the importance of carefully reviewing and understanding the initial agreement, as any changes must be formally documented and agreed upon by both Degree Wellness and the developer.