Under what conditions is a Degree Wellness Licensed Provider deemed to be in default of the agreement?
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)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider will be considered in default of their agreement under specific conditions. These conditions include assigning or transferring the agreement without prior written consent from Management Company, or if the ownership of the Licensed Provider changes without this consent. If a default occurs, Management Company has the right to terminate the agreement by delivering a notice of termination to the Licensed Provider, with consideration given to any applicable cure rights as outlined in the agreement.
This means that a Degree Wellness Licensed Provider must obtain written approval from Management Company before making any changes to the ownership or transferring the agreement to another party. Failure to do so can result in the termination of the agreement. The inclusion of cure rights suggests that in some instances, the Licensed Provider may have an opportunity to correct the default before termination becomes effective, but this is not guaranteed and depends on the specific circumstances and terms outlined in the agreement.
This clause protects Degree Wellness and Management Company by ensuring control over who operates under their brand and system. It also allows them to maintain standards and protect their interests by preventing unauthorized transfers or changes in ownership. Prospective Degree Wellness Licensed Providers should carefully review the default and termination sections of the agreement to fully understand their obligations and the potential consequences of non-compliance.