Under what conditions is a Degree Wellness Licensed Provider deemed to be in default under 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 can be in default of their agreement under specific conditions. These conditions include assigning or transferring the agreement without prior written consent from the Management Company, or if the ownership of the Licensed Provider changes without the Management Company's consent. If a default occurs, the Management Company has the right to terminate the agreement by delivering a notice of termination to the Licensed Provider, subject to any applicable cure rights.
This means that a Degree Wellness Licensed Provider must obtain written approval from the 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. It is important for prospective franchisees to understand these conditions and ensure they comply with the terms of the agreement to avoid default and potential termination.
These types of default provisions are standard in franchise agreements to protect the franchisor's brand and control over the franchise system. Prospective Degree Wellness franchisees should carefully review the default and termination sections of the agreement with legal counsel to fully understand their rights and obligations.