Under what conditions can either party terminate the Degree Wellness agreement with 60 days' notice?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
12.2 This Agreement may be terminated by either Party (a) in its sole and absolute discretion upon sixty (60) days' written notice to the other Party, or (b) immediately by written notice to the other Party if such Party reasonably believes, based upon an opinion of qualified legal counsel, that this Agreement is in violation of applicable law; provided, however, that the Parties will negotiate in good faith to amend the Agreement to comply with all such applicable law while still achieving the primary purposes hereof, or (c) immediately by written notice to the other Party upon termination of the Franchise Agreement.
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, either party, which includes both the Management Company and the Licensed Provider, can terminate the agreement in its sole and absolute discretion by providing sixty (60) days' written notice to the other party. This means that either party can decide to end the agreement for any reason, or no reason at all, as long as they provide the required notice.
This termination clause provides both Degree Wellness and the franchisee with a degree of flexibility. The franchisee isn't locked into the agreement if their circumstances change, and Degree Wellness can also make strategic decisions about its network. However, it also introduces uncertainty, as either party could choose to terminate the agreement with relatively short notice, potentially disrupting business operations.
It's important for a prospective Degree Wellness franchisee to understand the implications of this termination clause. While it offers flexibility, it also carries the risk of unexpected termination. Franchisees should carefully consider their own business plans and financial projections in light of this potential uncertainty and seek legal counsel to fully understand their rights and obligations under the agreement.