Is Degree Wellness allowed to modify the specifications and components of the required Computer System?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
5.3 Modifications to System. We will continually be reviewing and analyzing developments relative to the System, and based upon our evaluation of this information, may make changes in the System, including but not limited to adding new components to services and products offered and equipment used by Studio franchises.
Within sixty (60) days after you receive notice from us, you agree to obtain the components of the Computer System that we designate and require from time to time. You further acknowledge and agree that we and our affiliates have the right to charge a reasonable systems fee for software or systems installation services; modifications and enhancements specifically made for us or our affiliates that are licensed to you; and other maintenance and support Computer System-related services that we or our affiliates furnish to you. You will have sole responsibility for: (1) the acquisition, operation, maintenance, and upgrading of your Computer System; (2) the manner in which your Computer System interfaces with our computer system and those of third parties; and (3) any and all consequences that may arise if your Computer System is not properly operated, maintained, and upgraded.
- e. We are not responsible or liable for any actual, alleged, or perceived defects or deficiencies in the Computer System, any components thereof, Service Provider(s), or any required third-party software, or the performance of any of the forgoing.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness retains the right to make changes to the System, which includes the computer system. Specifically, Degree Wellness may add new components to services and products offered and equipment used by Studio franchises. This means that Degree Wellness franchisees must adapt to these changes.
Degree Wellness franchisees are responsible for the acquisition, operation, maintenance, and upgrading of their Computer System, as well as how it interfaces with Degree Wellness's system and third parties. Franchisees also bear the consequences if their Computer System is not properly maintained and upgraded. Degree Wellness is not liable for any defects or deficiencies in the Computer System, its components, or any required third-party software.
Degree Wellness franchisees are required to obtain the designated components of the Computer System within 60 days of receiving notice from Degree Wellness. Franchisees acknowledge that the costs of the Computer System, including additions or modifications, may not be fully amortizable over the term of the agreement, but they still agree to incur these costs. Degree Wellness and its affiliates can charge a reasonable systems fee for software or systems installation services, modifications and enhancements, and other Computer System-related maintenance and support services.
Overall, while Degree Wellness retains the right to modify the computer system, the franchisee is responsible for maintaining and upgrading their own system and bearing the associated costs. This arrangement is fairly typical in franchising, where the franchisor sets system standards but the franchisee manages the day-to-day technology operations at their location.