Besides the Degree Wellness Franchise Agreement, are there any other agreements or understandings between the parties regarding the terms and conditions of the agreement?

According to the 2025 Degree Wellness FDD, in addition to the Degree Wellness Franchise Agreement, a Studio Management Agreement exists between the Management Company and the Licensed Provider (franchisee). This agreement outlines the terms and conditions under which the Management Company provides management, administrative, and similar services to the Licensed Provider, enabling the franchisee to offer health and wellness services using the Degree Wellness system and marks.

The Studio Management Agreement covers several key aspects of the relationship between the Management Company and the Licensed Provider. It details the responsibilities of the Management Company, including acquiring the site for the Studio, and ensures that the Licensed Provider maintains the necessary licenses to provide services. The agreement also includes representations and warranties from both parties, ensuring that the agreement is valid and binding.

Furthermore, the Studio Management Agreement addresses confidentiality, restrictive covenants, and the relationship between the parties. It protects Degree Wellness's confidential information and trade secrets, restricts the Licensed Provider from competing with the Studio or disparaging the Management Company or Degree Wellness, and clarifies that the parties are independent contractors. Degree Wellness is a third-party beneficiary to certain provisions, but is not a party to the agreement itself, meaning the franchisee has no contractual rights against Degree Wellness regarding the Studio's operations or profitability.

Prospective Degree Wellness franchisees should carefully review the Studio Management Agreement to understand their rights and obligations, as well as the services provided by the Management Company. They should also note that the Management Company makes no warranties regarding the quality of its services or the potential income or profit of the Studio. Understanding the full scope of this agreement is crucial for a successful franchise operation.