Under what circumstances can Degree Wellness terminate the Franchise Agreement if it conflicts with legal requirements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and we are unable to reach such an agreement within 30 days after notice of the issue is given to the other party, or if fundamental changes to this Agreement are required to make it conform to the legal requirements, then we reserve the right to terminate this Agreement upon notice to you, in which case neither party shall have any liability to the other but all of your post-termination obligations set forth in Section 16 shall apply.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has the right to terminate the Franchise Agreement if the agreement conflicts with legal requirements. Specifically, if Degree Wellness and the franchisee cannot reach an agreement within 30 days after notice of the issue, or if fundamental changes are required to make the agreement conform to legal requirements, Degree Wellness reserves the right to terminate the agreement.
In the event of such termination, neither party will have any liability to the other. However, all post-termination obligations of the franchisee, as outlined in Section 16 of the agreement, will still apply. This means that even though the agreement is terminated due to legal conflicts, the franchisee must still adhere to the obligations regarding confidential information, de-identification of the premises, and other actions as specified in Section 16.
This clause protects Degree Wellness from being bound by an agreement that violates the law, while also ensuring that the franchisee fulfills certain responsibilities even after termination. Prospective franchisees should carefully review Section 16 to understand their post-termination obligations and seek legal counsel to fully understand the implications of this termination clause.