Can the definition of 'Management Company Services' for Degree Wellness change?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 For purposes of this Agreement, the phrase "Management Company Services" specifically includes the following, except to the extent any of the foregoing would constitute Studio Services (as defined in Section 3.1 below): [Subject to change in order to comply with applicable law]
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the definition of 'Management Company Services' is subject to change. Specifically, the FDD states that the services included in the definition can change to comply with applicable law.
This means that the services the Management Company provides to the Licensed Provider, as outlined in the agreement, are not fixed and may be adjusted by Degree Wellness. These services include acquiring the site for the studio, handling lease responsibilities, acquiring and maintaining fixtures and equipment, developing business plans, managing operational workflow, providing office management, hiring and training staff, and administering payroll and insurance.
For a prospective Degree Wellness franchisee, this flexibility could be both beneficial and concerning. On one hand, changes might be implemented to improve efficiency or adapt to new market conditions. On the other hand, it introduces uncertainty about the scope of services the Management Company will provide throughout the term of the agreement. It would be prudent for a potential franchisee to seek clarification from Degree Wellness regarding the types of changes that could be made and how those changes might affect their business operations and profitability.