What is a 'Development Period' in the context of a Degree Wellness development agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Development Schedule. The Development Schedule referred to in Section 5 of the Development Agreement is as follows: Expiration of Development Period (each, a "Development Period") No. of New Studios Opened Within Development Period Cumulative No. of Studios that Must Be Open and Operating 12 Months from Effective Date 1 1 Months 13 through 24 1 2 of the Development Agreement Months 24 1 3 through 36 of the Development Agreement DEVELOPER FRANCHISE, LLC DEGREE WELLNESS NAME, TITLE
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a 'Development Period' is a defined timeframe within the Development Schedule that specifies the number of new studios a developer is required to open. The Development Schedule outlines the number of new Degree Wellness studios that must be opened within specific timeframes, with the 'Expiration of Development Period' marking the end of each period.
For a prospective Degree Wellness developer, this means they will have a set schedule to adhere to, detailing how many studios they need to have operational within certain periods (e.g., 12 months, 24 months, 36 months from the effective date). For example, the Development Schedule states that 1 studio must be opened within 12 months from the effective date, bringing the cumulative number of studios to 1. By months 13 through 24, another studio must be opened, bringing the cumulative number to 2. By months 25 through 36, a third studio must be opened, bringing the cumulative number to 3.
This schedule is crucial because it sets clear expectations and milestones for the developer. Failing to meet these milestones could potentially lead to breaches of the development agreement. The developer's rights to a specific Site Selection Area are tied to this development schedule. Therefore, understanding and planning for these timelines is essential for any prospective Degree Wellness area developer.
It is important to note that the franchisor reserves the right to change their policies, procedures, standards, specifications, or manuals at their discretion, which could impact the development schedule. Therefore, a prospective developer should carefully review the Development Agreement and related documents to fully understand their obligations and the franchisor's rights.