Under the Degree Wellness Franchise Agreement, if the Franchise Agreement is terminated, does this automatically terminate the Development Agreement, if applicable?

According to Degree Wellness's 2025 Franchise Disclosure Document, the termination of the Franchise Agreement does not automatically result in the termination of the Development Agreement, if one exists.

This means that even if the franchisee's right to operate a Degree Wellness studio under the Franchise Agreement is terminated, the obligations and rights under the Development Agreement might still be in effect. The Development Agreement typically outlines the franchisee's commitment to open a certain number of Degree Wellness locations within a specific timeframe and territory.

Therefore, a franchisee needs to carefully review both the Franchise Agreement and the Development Agreement to understand the implications of termination under either agreement. They should also seek legal counsel to fully understand their rights and obligations in such a scenario. It is important to note that while termination of the Franchise Agreement doesn't automatically terminate the Development Agreement, there might be specific clauses within the Development Agreement itself that address termination scenarios related to the Franchise Agreement.