What is the Developer required to do contemporaneously with the execution of the Degree Wellness Development Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Agreement.
Contemporaneously with the execution of this Agreement, Developer must enter into Franchisor's current form of Franchise Agreement for the Initial Studio that Developer is required to open within the Site Selection Area.
In the event Developer is a business entity of any kind, then Developer's principals/owners must each execute the form of personal guaranty attached to the foregoing Franchise Agreement, as well as any additional Franchise Agreements described in Section 4 of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Developer must enter into the Franchisor's current form of Franchise Agreement for the Initial Studio that the Developer is required to open within the Site Selection Area, contemporaneously with the execution of the Development Agreement.
Furthermore, if the Developer is a business entity, then the Developer's principals/owners must each execute the form of personal guaranty attached to the Franchise Agreement. This personal guarantee extends not only to the initial Franchise Agreement but also to any additional Franchise Agreements described in Section 4 of the Development Agreement.
This requirement ensures that Degree Wellness has a binding agreement for the first studio's operation and a personal commitment from the Developer's principals, if applicable. This arrangement provides Degree Wellness with added security and aligns the interests of the Developer's leadership with the success of the franchise.