factual

Is Degree Wellness or its affiliates potentially an approved supplier or distributor?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

ct with our designated supplier to provide medical director services.

We are currently not an approved supplier for any other product, service, or equipment. We reserve the right to designate us and/or our affiliates as approved suppliers, or the exclusive

supplier(s), from whom you may purchase or lease certain other categories of products, services, and equipment.

Except for DW Financial Services, LLC, no franchisor officer owns any interest in any supplier.

Our Involvement with Suppliers

We and our affiliates and designees reserve the right to receive revenue or other material consideration from suppliers in consideration for other goods or services that we require or advise you to obtain from approved suppliers.

We negotiate price terms and other purchase arrangements with suppliers for you for some items that we require or suggest you to lease or purchase in developing and operating your Degree Wellness franchise, including clothing, marketing materials, services, and equipment. There currently are no purchasing and distribution cooperatives.

Medical Purchases

The corporate practice of medicine doctrine restricts layperson-franchisees from determining the medical equipment and supplies to be used in the operation of the medical services provided in the Studio.

Effects of Compliance and Noncompliance

We do not provide any other benefits to you because of your use of designated or approved services and products, or suppliers.

Revenue We Derive From Franchisee Purchases

We do not currently derive revenue from Franchisee purchases but we reserve the right to in the future. As such for the year ending December 31, 2025, we received $0 from Franchisee purchases, which is 0% of our total revenue of $0. For the year ending December 31, 2025, our affiliate DW Financial received $0 from Franchisee purchases, which is 0% of its total revenue of $0.

Item 9

FRANCHISEE'S OBLIGATIONS

**This table lists your principal obligations under the franchise and other agreements.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness or its affiliates may become approved suppliers or distributors in the future. While Degree Wellness states that they are currently not an approved supplier for most products, services, or equipment, they reserve the right to designate themselves or their affiliates as approved or exclusive suppliers for certain categories of products, services, and equipment.

This means that as a franchisee, you might be required to purchase or lease certain items directly from Degree Wellness or its affiliates in the future. The FDD also states that if a franchisee or one of their owners cannot legally provide services to the Franchised Business, they must contract with Degree Wellness's designated supplier to provide medical director services.

Degree Wellness estimates that expenditures in leasing or purchasing items from approved suppliers will represent approximately 50% of the total costs of establishing and operating a Degree Wellness franchise. Degree Wellness also reserves the right to receive revenue from suppliers based on the goods and services that franchisees are required or advised to obtain from those approved suppliers. Franchisees are required to purchase products for sale in designated quantities, use prescribed formats and containers, and purchase all materials only from approved distributors and suppliers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.