Does the Degree Wellness Development Agreement allow for renewal or extension of the term?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Development Agreement does not offer renewal or extension options. The table in Item 17 specifically lists "Renewal or extension of the term" as "Not Applicable" under both the "Section in Development Agreement" and "Summary" columns. This means that once the initial term of the Development Agreement concludes, there is no provision for extending or renewing it.

For a prospective Degree Wellness developer, this implies that the development rights granted by the agreement are limited to the initial term. The length of the franchise term is determined by Section 6.1 of the Development Agreement, beginning on the effective date and ending on the earlier of the date you open the last Studio you are required to open under your Development Schedule or the expiration of your Development Schedule.

It is important for potential developers to understand the implications of this limited term, especially in relation to their development plans and investment timelines. If a developer anticipates needing more time to fulfill their development obligations, this lack of renewal option could pose a significant risk. They should discuss this aspect with Degree Wellness to fully understand the factors influencing the initial term's length and any possibilities for flexibility or extensions under specific circumstances, even if not formally guaranteed in the agreement.