What documentation defines the Degree Wellness Protected Territory?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Protected Territory; Reference to Exhibit 1; Reservation of Rights.
You acknowledge that the Franchise granted by this Agreement gives you the right to operate your Franchise only at the Premises.
Provided you are in full compliance with this Agreement, neither we nor our affiliates will operate or grant a franchise for the operation of another Studio franchise physically located within the territory described in Exhibit 1 (the "Protected Territory").
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the specific details of a franchisee's protected territory are outlined in Exhibit 1 of the Franchise Agreement. The document states that if a franchisee is in full compliance with the agreement, Degree Wellness and its affiliates will not operate or grant a franchise to another Studio physically located within the territory described in Exhibit 1.
This means that a prospective Degree Wellness franchisee needs to carefully review Exhibit 1, as it defines the geographic boundaries within which they will have some level of exclusivity. The Protected Territory ensures that Degree Wellness will not establish another franchise within the defined area, offering some protection from direct competition from the franchisor or other franchisees.
However, the FDD also indicates that the franchise agreement only grants the right to operate the franchise at the specific Premises. This suggests that the protected territory may be limited to the immediate vicinity of the franchisee's location, and it is crucial for potential franchisees to understand the size and scope of the territory described in Exhibit 1 before signing the agreement. It is also important to note that the protection is contingent on the franchisee's full compliance with the Franchise Agreement.