What is the definition of 'Lease' in the context of the Degree Wellness franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Under the terms and conditions of the Franchise Agreement, Franchisor has the right to approve the site for the Studio; and if the Studio premises will be occupied pursuant to a commercial lease, Franchisor has prescribed certain lease terms and has the right to condition its approval of a proposed site on inclusion of the prescribed lease terms.
- D. Franchisee desires, and has requested Franchisor's approval, to develop and operate one Degree Wellness Studio at the premises ("Premises") identified in the attached lease ("Lease").
- E. Landlord desires to lease to Franchisee the Premises for purposes of developing and operating one Degree Wellness Studio.
- F. The parties desire to modify and amend the Lease in accordance with the terms and conditions contained herein for purposes of obtaining Franchisor's approval.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the term 'Lease' refers to the agreement under which the franchisee occupies the premises for their Degree Wellness Studio. The franchisor, Degree Wellness Franchise, LLC, has the right to approve the site for the studio. If the studio premises are to be leased, Degree Wellness has specific lease terms that it requires to be included in the lease agreement. The franchisor can condition its site approval on these terms being present in the lease.
The franchisee must obtain Degree Wellness's approval to develop and operate a studio at a specific location. The landlord, in turn, leases the premises to the franchisee for the purpose of operating the Degree Wellness Studio. All parties involved, including the franchisor, franchisee, and landlord, may need to modify the lease to meet Degree Wellness's requirements to secure the franchisor's approval.
Degree Wellness also has certain rights related to the lease. The landlord must provide Degree Wellness with copies of any notices sent to the franchisee regarding the lease. Degree Wellness has the right to enter the premises to protect its system and trademarks or to address any defaults under the franchise agreement or the lease. In the event the franchisee defaults on the lease, the landlord must notify Degree Wellness, giving them the option to correct the default and assume the lease. If Degree Wellness assumes the lease, it becomes the tenant, and the franchisee loses their rights under the lease. The franchisee is also permitted to assign the lease to Degree Wellness under certain conditions, such as the expiration or termination of the franchise agreement.