Is the Degree Wellness agreement considered a Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a Degree Wellness Studio in accordance with the System in a specified geographic territory. This
Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a Degree Wellness Studio (we refer to your Degree Wellness franchise hereinafter as the "Franchise" or the "Franchised Business").
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a Degree Wellness Studio, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you
- a Franchise to operate a Studio offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for Degree Wellness Studios.
You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years.
Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below).
- 2.2 Full Term Performance.
You specifically agree to be obligated to operate the Franchise, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the business of the Franchise for the entire Initial Term, and any subsequent renewal or extension of the Term of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the agreement between the franchisee and franchisor is explicitly referred to as the "Franchise Agreement." This agreement grants the franchisee the right and obligation to develop and operate a Degree Wellness Studio, under the terms and conditions outlined within the agreement. The Franchise Agreement also gives Degree Wellness the right to approve the site for the studio.
Degree Wellness grants franchises to those who meet their qualifications, allowing them to own and operate a Degree Wellness Studio in accordance with the System within a specified geographic territory. The document being presented to a potential franchisee indicates their desire to obtain the right to develop, own, and operate a Degree Wellness Studio, which is referred to as the "Franchise" or the "Franchised Business".
The franchise grants the right to operate at a specific location for an initial term of 10 years. Termination or expiration of the agreement leads to the termination or expiration of the franchise, including the rights to use Degree Wellness's marks or confidential information. The franchisee is obligated to operate the franchise, fulfill the agreement's obligations, and continuously promote the franchise for the entire initial term and any subsequent renewals or extensions.