What is a 'Franchise Agreement' in the context of a Degree Wellness development agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Franchisee has acquired the right and has undertaken the obligation to develop and operate a Degree Wellness Studio pursuant to the terms and conditions of a certain franchise agreement between Franchisee and Franchisor ("Franchise Agreement").
- C. Under the terms and conditions of the Franchise Agreement, Franchisor has the right to approve the site for the Studio; and if the Studio premises will be occupied pursuant to a commercial lease, Franchisor has prescribed certain lease terms and has the right to condition its approval of a proposed site on inclusion of the prescribed lease terms.
- During the term of the Franchise Agreement, the Premises will be used only for the operation of the Studio.
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- Landlord consents to Franchisee's use of such Proprietary Marks and signs, interior and exterior décor, furnishings, fixtures, items, color schemes, plans, specifications, and related components of Degree Wellness System (as defined in the Franchise Agreement and as Franchisor may prescribe for the Studio).
This Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a Degree Wellness Studio (we refer to your Degree Wellness franchise hereinafter as the "Franchise" or the "Franchised Business").
In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide health related care, and are willing to undertake the investment and effort to own and operate a business that will manage a Studio under the System; we refer to these businesses as "Studio Management Businesses."
In the event of a conflict between this Agreement and any Franchise Agreement(s), the terms, conditions and intent of this Agreement will control.
Nothing in this Agreement, or any related agreement, is intended to disclaim any of the representations Franchisor made to Developer in the Franchise Disclosure Document that Franchisor provided to Developer.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a 'Franchise Agreement' outlines the terms and conditions under which a franchisee is granted the right and obligation to develop and operate a Degree Wellness Studio. The Franchise Agreement gives Degree Wellness the right to approve the site for the studio and prescribe certain lease terms if the studio premises will be occupied under a commercial lease.
The agreement specifies that during its term, the premises must be used solely for operating the Degree Wellness Studio. It also allows the franchisee to use Degree Wellness's proprietary marks, signs, interior and exterior décor, furnishings, fixtures, color schemes, plans, specifications, and related components of the Degree Wellness System, as defined and prescribed by Degree Wellness.
Furthermore, the Franchise Agreement is presented to individuals expressing a desire to obtain the right to develop, own, and operate a Degree Wellness Studio. In some instances, Degree Wellness may offer franchises to individuals or entities not licensed to practice or provide health-related care, particularly in states where such ownership is permitted, for managing a Studio under the System, referred to as 'Studio Management Businesses.'
In the event of a conflict between the Development Agreement and any Franchise Agreement, the terms, conditions, and intent of the Development Agreement will take precedence. However, nothing in either agreement is intended to disclaim any representations made by Degree Wellness to the developer in the Franchise Disclosure Document.