For the Degree Wellness franchise, from whom must I lease or purchase leasehold improvements, equipment, and other items?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Lease and Purchase Specifications and Requirements
You must lease or purchase your Studio location, leasehold improvements, computer and office equipment (including cash registers and computer hardware and software), equipment, fixtures, furnishings and decor, signage, insurance, inventory , clothing, branding, advertising and marketing materials and services, grand opening kit, training, supplies, programs and other items and services under our specifications as set forth in our Operations Manual for Studios – see Items 7 and 11. These specifications include standards for appearance, delivery, performance, quality control, and/or design.
You must lease or purchase your leasehold improvements, equipment, computer and billing system, equipment, inventory, marketing materials, supplies, services, products, and other items only from suppliers or designees approved by us. Our Operations Manual lists our approved suppliers. There may be items for which we or our affiliates are approved suppliers (see below).
You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than
$1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Studio on your behalf (see Item 6). You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by us. The cost of your premiums will depend on the insurance carrier's charges, terms of payment, and your insurance and payment histories.
We also require you to maintain a dedicated high speed internet services or connection or other communication means for remote access and information retrieval by us, as we may specify from time to time in the Operations Manual or otherwise in writing. We do not specify a specific internet supplier.
We have contracted with third parties to provide web site design, maintenance, hosting, and search engine optimization for our franchises, and certain technology-related administrative expenses. You will be required to use all such services.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees must lease or purchase leasehold improvements, equipment, computer and billing systems, inventory, marketing materials, supplies, services, products, and other items only from Degree Wellness-approved suppliers or designees. These approved suppliers are listed in Degree Wellness's Operations Manual, and may include Degree Wellness or its affiliates.
Degree Wellness has developed standards and specifications for the leasehold improvements of your Studio, the equipment and materials used to perform services at your Studio, and products authorized for sale at your Studio. Degree Wellness has approved, and will continue to periodically approve, specifications and/or suppliers and distributors of the above items, services and products, which may include Degree Wellness or its affiliates, that meet their standards and requirements. These specifications include standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations.
If a franchisee wishes to use a supplier not already approved, they must submit a written request for approval. Degree Wellness may inspect the supplier's facilities and require product samples for testing, potentially at the franchisee's expense, including an evaluation fee not to exceed the actual cost of the inspection and the actual cost of the test. Degree Wellness will then approve or disapprove the supplier within 60 days of receiving all required information. Degree Wellness also reserves the right to re-inspect approved suppliers and revoke approval if they no longer meet the brand's criteria. Degree Wellness does negotiate price terms and other purchase arrangements with suppliers for you for some items that they require or suggest you to lease or purchase in developing and operating your Degree Wellness franchise, including clothing, marketing materials, services, and equipment.
Degree Wellness estimates that expenditures in leasing or purchasing real estate, equipment, fixtures, products, marketing materials, services, and computer hardware and software from their approved suppliers will represent approximately 50% of your total purchases and expenses in connection with establishing and operating your Degree Wellness franchise. Degree Wellness also requires you to maintain a dedicated high speed internet services or connection or other communication means for remote access and information retrieval by them, as they may specify from time to time in the Operations Manual or otherwise in writing. Degree Wellness does not specify a specific internet supplier.