Can a Degree Wellness franchisee sell products at wholesale?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
1.2 The Franchise System.
- a. Through the expenditure of considerable time, effort and money, we and our affiliates have devised a system for the establishment and operation of a Degree Wellness business model that specializes in innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health and other related services and products (all of which we refer to in this Agreement as the "System"). The System includes procedures, specifications, techniques and procedures that we may designate for operating a wellness business. This business model includes a studio model offering all of our franchised services and products (individually, a "Studio" or "Studio," and collectively, the "Studios" or "Studios"). Subject to an additional fee, we also offer additional programs, products and services as more fully described herein, which additional programs, products and services may change from time to time. We identify the System by the use of certain trademarks, service marks and other commercial symbols, including the marks "Degree Wellness," and certain associated designs, artwork and logos, which we may change or add to from time to time (the "Marks").
- b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a Degree Wellness Studio in accordance with the System in a specified geographic territory. 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").
c. 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." For example, certain states do not permit non-licensed persons to own and/or health care practices, but some states do. In states that do not permit non-licensed persons to own or operate businesses performing health care related services, a Studio Management Business may be offered. In states that do permit non-licensed persons to own and operate health care businesses, a Studio Management Business Franchise is not necessary, but may be offered by us under certain circumstances.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether a Degree Wellness franchisee can sell products at wholesale. The document outlines the franchise system, the obligations of the franchisee, and the standards of operation, but it does not specifically address wholesale sales.
However, the FDD does state that the Degree Wellness business model includes a studio model offering franchised services and products. It also mentions that the franchisee must operate the franchise in compliance with the agreement and maintain the condition and appearance of the franchise according to the franchisor's standards. This suggests that the primary focus is on retail sales and services provided directly to customers at the studio location.
Because the FDD does not directly address the issue of wholesale sales, a prospective Degree Wellness franchisee should seek clarification from the franchisor regarding whether wholesale distribution is permitted or supported within the franchise agreement. This inquiry should cover any potential restrictions, required approvals, or specific guidelines related to wholesale activities to ensure full compliance with the franchise terms.