What agreement must a Degree Wellness developer enter into contemporaneously with the execution of the Development Agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, a developer must enter into the Franchisor's current form of Franchise Agreement for the Initial Studio that the Developer is required to open within the Site Selection Area contemporaneously with the execution of the Development Agreement. This means that at the same time the developer signs the agreement granting them development rights, they must also sign a franchise agreement for their first Degree Wellness studio.

For a prospective Degree Wellness developer, this requirement ensures that they are committed to opening and operating at least one studio in the designated area. It also allows Degree Wellness to maintain control over the initial studio's operations and ensure it meets their standards.

Furthermore, if the Degree Wellness developer is a business entity, the principals or owners of that entity must each execute a personal guaranty attached to the Franchise Agreement. This personal guaranty extends not only to the initial Franchise Agreement but also to any additional Franchise Agreements described in Section 4 of the Development Agreement. This stipulation provides Degree Wellness with an added layer of financial security, as it holds the individuals behind the developing entity personally liable for the obligations under the agreements.