Does the Degree Wellness agreement allow for third-party beneficiaries?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at any time and from time to time, contract with one or more software providers, business service providers, or other third parties (individually, a "Service Provider") to develop, license, or otherwise provide to or for the use and benefit of you and other Degree Wellness Franchises certain software, software applications, and software maintenance and support services related to the Computer System that you must or may use in accordance with our instructions with respect to your Computer System. Any such agreement between us and a Service Provider (a "Master Service Agreement") may, but need not, address such matters as the types of products and services to be provided (or not to be provided) to you or for your benefit as a Degree Wellness Franchise, the manner and timing in which such products and services may be provided, software licensing issues and restrictions, the permitted or non-permitted uses of any product or service provided under the Master Service Agreement, and the provision and pricing of supplemental products or services available from or through the Service Provider. You acknowledge and agree that we may reasonably require you to sign a support or service agreement with us or a third party Service Provider setting forth, among other things, requirements relating to the installation of any such products or services, licensure of and/or the manner in which you may use any such products or services, payments and taxes, liability and indemnification of us and/or the Service Provider, confidential information and proprietary rights, suspension or termination of products or services provided thereunder, assignment of rights and delegation of duties thereunder, governing law and jurisdiction, pricing, and supplemental products and services available to or for
the benefit of Degree Wellness Studio Franchises (a "Service Agreement") that we may deem appropriate, and shall sign any such Service Agreement upon the earlier of signing this Agreement or promptly after receiving notice from us about our requirement for your to sign the Service Agreement. [The terms and conditions of any such Service Agreement are hereby incorporated herein by reference (the "Additional Terms and Conditions"). A copy of any such Service Agreement shall be attached to this Agreement as Exhibit 4.]
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Degree Wellness franchise agreement does not explicitly state whether third parties can be beneficiaries of the agreement. However, the FDD does mention third-party service providers in relation to software and other services.
Specifically, Degree Wellness may contract with software providers or business service providers to offer software and related services to franchisees. These agreements between Degree Wellness and the service providers (Master Service Agreements) may address the types of services provided, the manner and timing of service delivery, software licensing, permitted uses, and pricing of supplemental services. Franchisees may be required to sign a service agreement with Degree Wellness or a third-party service provider, which includes terms related to installation, licensing, payments, liability, confidentiality, and other relevant conditions.
While these third-party service providers are involved in providing services to the franchisees, the FDD does not clarify whether these third-party service providers, or any other third parties, can be considered beneficiaries of the franchise agreement itself. A prospective franchisee should seek clarification from Degree Wellness regarding third-party beneficiaries to fully understand their rights and obligations under the franchise agreement.