Under what conditions can a Degree Wellness agreement be terminated by mutual written consent?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Licensed Provider will be deemed to be in default under this Agreement, and Management Company will have the right to terminate this Agreement effective upon delivery of notice of termination to Licensed Provider, subject only to any right to cure to the extent expressly set forth below, if:
- (a) Licensed Provider assigns or transfers this Agreement, or the ownership of Licensed Provider (if an entity) changes, without the prior written consent of Management Company;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document excerpts, the conditions under which the agreement can be terminated by mutual written consent are not explicitly detailed. While the document outlines various scenarios for termination due to default by the Licensed Provider, it does not specify the process or conditions required for both parties to mutually agree to terminate the agreement in writing.
However, the agreement does mention conditions under which the agreement can be terminated. For example, the agreement can be terminated if the Licensed Provider assigns or transfers the agreement, or the ownership of the Licensed Provider changes, without the prior written consent of Management Company.
A prospective Degree Wellness franchisee should seek clarification from the franchisor regarding the specific procedures and requirements for mutual termination. Understanding these conditions is crucial for franchisees to know their options and obligations should they wish to end the agreement amicably.
It would be prudent for potential franchisees to discuss this aspect with existing franchisees and legal counsel to fully understand their rights and responsibilities regarding termination under various circumstances.