Does the Degree Wellness Development Agreement grant the Developer the right to use Degree Wellness's Marks or System?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor grants qualified third parties the right to develop a certain number of Studios within a defined site selection area (the "Site Selection Area") in accordance with the terms of this Agreement to which Developer must be strictly adhere, with each Studio within the Site Selection Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then-current form of franchise agreement (each, a "Franchise Agreement").
Developer recognizes the benefits from receiving the right to operate a Studio utilizing the System and desires to: (i) become a multi-unit operator subject to the terms of this Agreement; and (ii) receive the benefits provided by Franchisor under this Agreement.
Developer has applied for the right to open and operate a certain number of Studios within the Site Selection Area as set forth in this Agreement (each, a "Studio"), and Franchisor has approved such application in reliance on Developer's representations made therein.
Developer hereby acknowledges that adherence to the terms of this Agreement, including Franchisor's operations manual and other System standards and specifications, are essential to the operation of all Studios and the System as a whole.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Development Agreement grants developers the right to open Degree Wellness studios utilizing the brand's system and marks. The document states that Degree Wellness grants qualified third parties the right to develop a certain number of studios within a defined site selection area. Each studio within the Site Selection Area must be opened and operating utilizing the Marks and System.
The agreement emphasizes that developers must strictly adhere to the terms outlined in the agreement. This includes using Degree Wellness's operational manual and adhering to system standards and specifications. This adherence is crucial for the successful operation of all studios and the overall system.
Developers recognize the benefits of operating a Degree Wellness studio using the System and desire to become multi-unit operators under the agreement's terms. They also aim to receive the benefits provided by Degree Wellness under this agreement. The franchisor approves the developer's application to open and operate a specific number of studios within the Site Selection Area, based on the representations made in the application.