According to the Degree Wellness transfer agreement, who are the 'Parties'?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
BACKGROUND
- A. Degree Wellness Franchise, LLC, or its affiliates, and their successors or assigns ("Franchisor") franchises the operation of a studio, (each "Degree Wellness Studio" or "Studio") featuring innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health, and offers related products and merchandise under the name Degree Wellness and/or other trademarks, service marks, logos, and other indicia of origin prescribed by Franchisor (collectively, the "Proprietary Marks").
- B. Franchisee has acquired the right and has undertaken the obligation to develop and operate a Degree Wellness Studio pursuant to the terms and conditions of a certain franchise agreement between Franchisee and Franchisor ("Franchise Agreement").
- C. Under the terms and conditions of the Franchise Agreement, Franchisor has the right to approve the site for the Studio; and if the Studio premises will be occupied pursuant to a commercial lease, Franchisor has prescribed certain lease terms and has the right to condition its approval of a proposed site on inclusion of the prescribed lease terms.
- D. Franchisee desires, and has requested Franchisor's approval, to develop and operate one Degree Wellness Studio at the premises ("Premises") identified in the attached lease ("Lease").
- E. Landlord desires to lease to Franchisee the Premises for purposes of developing and operating one Degree Wellness Studio.
- F. The parties desire to modify and amend the Lease in accordance with the terms and conditions contained herein for purposes of obtaining Franchisor's approval.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document, in the context of modifying a lease agreement, the 'parties' involved are the Franchisor (Degree Wellness Franchise, LLC, or its affiliates), the Franchisee, and the Landlord. This is detailed in the 'BACKGROUND' section, which outlines the relationships and intentions of each party. Degree Wellness, as the Franchisor, franchises the operation of Degree Wellness Studios. The Franchisee has acquired the right to operate a Degree Wellness Studio under the terms of a franchise agreement. The Landlord desires to lease the premises to the Franchisee for the purpose of operating the Degree Wellness Studio. All parties involved agree to modify the lease in accordance with the terms and conditions outlined in the agreement to obtain Degree Wellness's approval.
This arrangement ensures that all parties are aligned in their objectives: Degree Wellness maintains brand standards and operational consistency, the Franchisee secures a suitable location for their studio, and the Landlord leases their property to a business that meets Degree Wellness's requirements. The agreement highlights the importance of Franchisor approval for site selection and lease terms, indicating Degree Wellness's active role in ensuring that the location meets its standards for a successful franchise operation.
For a prospective Degree Wellness franchisee, this means that site selection and lease negotiation involve not only the franchisee and the landlord but also Degree Wellness. Franchisees should be aware that Degree Wellness has specific requirements for the premises and lease terms, and their approval is necessary. This involvement can be beneficial, as it ensures that the location is suitable for the Degree Wellness business model and meets the brand's standards. However, it also adds a layer of complexity to the leasing process, as the franchisee must satisfy both the landlord and Degree Wellness.