Under what conditions can Degree Wellness take possession of the Premises if the Degree Wellness Agreement is terminated?

The 2025 Degree Wellness FDD addresses the brand's rights regarding the premises upon termination of the franchise agreement. Specifically, if a franchisee retains possession of the premises after termination, Degree Wellness can require the franchisee to remove or modify any interior and exterior decor that associates the premises with the Degree Wellness brand. This includes signage, posters, furniture, equipment, products, or display units bearing Degree Wellness's trademarks. The franchisee is responsible for these de-identification expenses.

However, the FDD does not explicitly state that Degree Wellness can directly take possession of the premises upon termination. Instead, it focuses on the franchisee's obligations to remove Degree Wellness branding and intellectual property from the location if the franchisee remains in possession. The agreement outlines the franchisee's responsibility to disassociate the premises from the Degree Wellness image.

Therefore, while Degree Wellness can enforce de-branding requirements, the FDD excerpts provided do not grant Degree Wellness the right to outright seize the physical location. A prospective franchisee should clarify with Degree Wellness under what specific circumstances, if any, Degree Wellness can assume direct possession of the premises following termination of the franchise agreement. This would include understanding any lease agreements or other legal mechanisms that might enable Degree Wellness to take possession.