What is the Degree Wellness franchisee granted in the original Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
nt from those in this Agreement. You also acknowledge and agree that we may, in our sole discretion and business judgment, waive or modify comparable provisions of any of those franchise agreements in a non-uniform manner, so long as we do so on a reasonably non-discriminatory basis.
2. GRANT OF FRANCHISE.
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a Degree Wellness Studio, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you
- a Franchise to operate a Studio offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for Degree Wellness Studios. You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years. The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement. To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below). All references to the "Term of this Agreement" refer to the period from the Agreement Date to the date on which this Agreement actually terminates or expires.
- 2.2 Full Term Performance.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is granted a franchise to operate a Degree Wellness Studio for an initial term of 10 years. This franchise allows the franchisee to offer all products, services, and proprietary programs in accordance with the Degree Wellness System. The franchisee must operate the franchise at a mutually agreeable site and use the System and Marks in its operation.
The agreement specifies that the franchisee has the right to operate their franchise only at the designated premises. As long as the franchisee is in full compliance with the agreement, Degree Wellness and its affiliates will not operate or grant a franchise for another Studio within the protected territory outlined in Exhibit 1. This protected territory provides a defined area where the franchisee can operate without direct competition from other Degree Wellness franchises.
Termination or expiration of the Franchise Agreement results in the termination or expiration of the franchise and all associated rights, including the use of the Marks and Confidential Information. The franchisee is obligated to operate the franchise, fulfill the agreement's obligations, and continuously promote the business for the entire initial term and any subsequent renewals or extensions.