Under what financial conditions can Degree Wellness immediately terminate the franchise agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness can terminate the franchise agreement immediately if a franchisee is adjudged bankrupt, becomes insolvent, or makes a general assignment for the benefit of creditors. Additionally, Degree Wellness can terminate the agreement if the franchisee fails to satisfy any judgment rendered against them for a period of 30 days after all appeals have been exhausted.

This means that if a Degree Wellness franchisee faces severe financial distress leading to bankruptcy, insolvency, or an inability to pay off legal judgments, Degree Wellness has the right to terminate the franchise agreement. This provision protects Degree Wellness from being associated with a failing business and helps maintain the brand's financial stability.

For a prospective franchisee, this highlights the importance of maintaining sound financial management and adhering to legal and financial obligations. Failure to do so could result in the immediate termination of the franchise agreement and the loss of their investment. It is crucial to understand these conditions and have a plan in place to manage financial risks effectively.