factual

Can Degree Wellness contract with third-party Service Providers to provide software and related services to franchisees?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

b. Software. 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)

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has the right to contract with third-party service providers to offer software and related services to franchisees. Degree Wellness may contract with software providers, business service providers, or other third parties (referred to as "Service Providers") to develop, license, or provide software, software applications, and software maintenance and support services related to the computer system that franchisees are required or permitted to use.

These agreements between Degree Wellness and Service Providers, known as "Master Service Agreements," may address various aspects, including the types of products and services provided, the manner and timing of service delivery, software licensing issues, permitted uses, and the pricing of supplemental products or services. Degree Wellness may require franchisees to sign a service agreement with Degree Wellness or a third-party Service Provider, outlining requirements for installation, licensing, usage, payments, taxes, liability, indemnification, confidentiality, termination, governing law, pricing, and supplemental products and services.

Franchisees are obligated to sign any such Service Agreement upon signing the Franchise Agreement or promptly after receiving notice from Degree Wellness. The terms and conditions of the Service Agreement are incorporated into the Franchise Agreement as Additional Terms and Conditions, with a copy of the Service Agreement attached as an exhibit. This means that Degree Wellness franchisees may be required to utilize specific software and technology solutions provided by third-party vendors chosen by Degree Wellness, and they must adhere to the terms and conditions set forth in the corresponding service agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.