factual

What is the dependency between the Degree Wellness agreement and the Franchise Agreement?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

see]* , which with its successors and assigns is herein called "Management Company", and [the professional corporation], which with its successors and assigns is herein called "Licensed Provider", is to EVIDENCE THAT:

WHEREAS, Management Company has entered into a Franchise Agreement (the "Franchise Agreement") with Degree Wellness, LLC ("Degree Wellness"), dated as of the date of this Agreement, whereby Degree Wellness grants to Management Company a franchise (the "Franchise") to operate a Studio Management Business and the right to use Degree Wellness's business model, services and products (the "System") and Marks (as defined in Section 4.2 below);

WHEREAS, Licensed Provider desires to provide health and wellness services utilizing Degree Wellness's System and Marks, and Licensed Provider requires the provision of certain management, administrative, and similar services; and

WHEREAS, Management Company and Licensed Provider desire to enter into an arrangement under the terms and conditions stated in this Agreement whereby Management Company can provide (or cause to be provided) certain management, administrative and similar services requested by Licensed Provider and whereby Licensed Provider can provide health and wellness services using the System and Marks at the Licensed Provider's Studio business, which may be carried out directly by the Licensed Provider or through an entity authorized to carry out such business (the "Studio").

NOW, THEREFORE, in consideration of the foregoing statements and the mutual covenants and promises made in this Agreement and for other valuable consideration (the receipt and sufficiency of which are hereby acknowledged), Management Company and Licensed Provider (herein collectively called the "Parties" and individually called a "Party") hereby agree as follows:

**1.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)

What This Means (2025 FDD)

According to the 2025 Degree Wellness Franchise Disclosure Document, the Studio Management Agreement is dependent on the Franchise Agreement. The Studio Management Agreement's initial term continues until the end of the Franchise Agreement's initial term. This means the Studio Management Agreement is tied to the Franchise Agreement's lifespan. If the Franchise Agreement is terminated, the Studio Management Agreement will also be affected.

Specifically, the Studio Management Agreement is between the Degree Wellness franchisee (referred to as the "Management Company") and the licensed healthcare provider (referred to as the "Licensed Provider"). The Management Company has a Franchise Agreement with Degree Wellness, which grants the Management Company the right to operate a Studio Management Business using Degree Wellness's System and Marks. The Licensed Provider provides health and wellness services utilizing Degree Wellness's System and Marks and requires management and administrative services.

This arrangement highlights the interconnectedness of the franchise operation. The franchisee's ability to operate the studio and the licensed provider's ability to offer services are both contingent upon the Franchise Agreement with Degree Wellness remaining in effect. A prospective franchisee should understand that any issues affecting the Franchise Agreement could also impact the Studio Management Agreement and the overall business operation.

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.