What is the Degree Wellness developer's obligation regarding additional franchise agreements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Additional Franchise Agreements.
Developer agrees and acknowledges that it must: (i) enter into Franchisor's then-current form of Franchise Agreement for each Additional Studio that Developer is required to open under this Agreement; and (ii) enter into such Franchise Agreements at such times that are required for Developer to timely meet, and strictly adhere to, its obligations under the agreed upon Development Schedule.
Development Obligations.
Developer must ensure that, at a minimum, Developer: (i) opens and commences operations of the number of new Studios during each of the development periods defined in the Development Schedule (each, a "Development Period"); and (ii) has the minimum cumulative number of Studios open and operating at the expiration of each such Development Period.
The parties agree and acknowledge that time is of the essence with respect to the foregoing development obligations, and that Developer's failure to comply with the Development Schedule in any manner with respect to any Development Period is grounds for immediate termination of this Agreement if not timely cured as set forth in Section 6.2 of this Agreement (and any future development rights granted hereunder).
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, a developer is obligated to enter into the franchisor's current form of Franchise Agreement for each additional studio they are required to open under the Development Agreement. These agreements must be entered into at times that allow the developer to meet and strictly adhere to the obligations outlined in the agreed-upon Development Schedule.
Specifically, the developer must ensure they open and commence operations of the required number of new Degree Wellness studios during each development period, as defined in the Development Schedule. They must also maintain the minimum cumulative number of studios open and operating by the expiration of each development period.
The Development Agreement emphasizes that time is of the essence regarding these development obligations. Failure to comply with the Development Schedule in any manner, for any Development Period, constitutes grounds for immediate termination of the agreement. This is applicable if the failure is not timely cured as outlined in Section 6.2 of the agreement, and it affects any future development rights granted under the agreement.
In essence, a Degree Wellness developer must commit to opening additional franchise locations according to a strict timeline, and failure to do so can result in the termination of their development agreement and loss of future development rights.