Does a Degree Wellness franchisee have territorial rights within the Site Selection Area?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you have not identified an approved location prior to entering into the Franchise Agreement, you will be granted a non-exclusive site selection area from within which you must locate your Studio (the "Site Selection Area"). You will have no territorial rights to the Site Selection Area.
Source: Item 12 — Territory (FDD pages 42–44)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee has not identified an approved location before signing the Franchise Agreement, Degree Wellness grants a non-exclusive site selection area. The franchisee must locate their studio within this Site Selection Area. The FDD explicitly states that the franchisee will have no territorial rights within the Site Selection Area.
This means that during the initial phase of establishing a Degree Wellness franchise, before a specific site is approved, the franchisee does not have exclusive rights to that area. Degree Wellness can grant other franchises or operate its own businesses within the Site Selection Area.
This lack of exclusivity during the site selection phase is a risk for potential franchisees. It is crucial to secure an approved location as quickly as possible to transition from the non-exclusive Site Selection Area to the exclusive Protected Territory. This ensures that Degree Wellness will not operate or grant a franchise to another Degree Wellness Studio within the Protected Territory.