Under the Degree Wellness franchise agreement, is either party obligated to execute additional documents reasonably requested by the other party to implement their obligations?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
23. ADDITIONAL DOCUMENTS.
Each of the parties hereto agrees to execute any document or documents that may reasonably be requested from time to time by the other party to implement or complete such party's obligations pursuant to this Agreement and to otherwise cooperate fully with such other party in connection with the performance of such party's obligations under this 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, both parties to the franchise agreement (Management Company and Licensed Provider) are obligated to execute additional documents if reasonably requested by the other party. Specifically, they must execute documents to implement or complete their obligations under the agreement and fully cooperate with each other in performing those obligations. This requirement ensures that both parties can take necessary steps to fulfill the agreement's intent.
This clause means that a Degree Wellness franchisee (Licensed Provider) may be required to sign additional documents during the franchise term if the Management Company reasonably requests them to better implement the agreement. These documents could relate to clarifying operational procedures, updating compliance requirements, or addressing unforeseen issues that arise during the course of the franchise.
The obligation to cooperate and execute additional documents is a fairly standard practice in franchising. It allows franchisors like Degree Wellness to adapt to changing business conditions, legal requirements, or system-wide improvements. However, the key word is 'reasonably' – the requests must be justifiable and related to fulfilling the agreement's objectives. A franchisee should seek legal counsel if they believe a request is unreasonable or goes beyond the scope of the original agreement.
It is important to note that Degree Wellness is identified as a third-party beneficiary in certain sections of the agreement, but is not a direct party to the agreement between the Management Company and the Licensed Provider. This means that while Degree Wellness benefits from certain aspects of the agreement, the direct contractual obligations regarding additional documents and cooperation primarily lie between the Management Company and the Licensed Provider (franchisee).