Upon termination of the Degree Wellness agreement, what happens to the license to use the premises?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ising from intellectual property, inventions, and teaching revenues created or carried out by Licensed Provider in the course of performing the Licensed Provider Services.
4. Grant of Limited Rights to Licensed Provider.
- 4.1 Management Company hereby grants Licensed Provider a revocable, nonassignable license to use the Premises, and all fixtures, equipment, and furnishings located therein, during the Agreement Term. The license to use the Premises granted by this Section 4.1 is not a lease or sublease of the Premises and this Agreement shall not be interpreted to create a landlord and tenant relationship between Management Company (or the owner of the Premises) and Licensed Provider or to give Licensed Provider any right to continued use, possession or occupancy of the Premises, except to the extent expressly stated in this Agreement. This license shall be deemed to end automatically upon the termination of this Agreement. Licensed Provider shall use all fixtures, equipment and furnishings granted by this Section 4.1 in the manner in which they are intended and in compliance with all rules and requirements of Management Company and, if applicable, its landlord; provided, however, that in all cases Licensed Provider shall have the discretion and authority to use such fixtures, equipment and furnishings to provide Studio Services only as deemed necessary or advisable by Licensed Provider in his/her discretion. Licensed Provider shall return to Management Company the Premises, fixtures, equipment, and furnishings in the same condition, reasonable wear and tear excepted, as they were in as of the date of 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, the license to use the premises ends automatically upon termination of the agreement. Specifically, the Management Company grants the Licensed Provider a revocable, nonassignable license to use the premises during the agreement term. This license is not a lease and does not create a landlord-tenant relationship.
Upon termination of the Degree Wellness agreement, the Licensed Provider must vacate the premises and return all keys, pass cards, and codes to the Management Company. This means the franchisee loses the right to operate the Degree Wellness business from that location and must relinquish control of the physical space.
This provision is standard in franchising, as the franchisor needs to regain control over the premises to either operate it themselves, transfer it to another franchisee, or otherwise repurpose the location. A prospective Degree Wellness franchisee should carefully consider the implications of this clause, especially if they have made significant investments in the location or if finding a new suitable location would be difficult.