Can a Degree Wellness franchisee use the premises for any purpose other than the operation of the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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).
- 10.1 Condition and Appearance of the Franchise. You agree that:
- a. neither the Franchise nor the Premises will be used for any purpose other than the operation of the Franchise in compliance with this Agreement;
- b. you will maintain the condition and appearance of the Franchise; its equipment, furniture, furnishings, and signs; and the Premises in accordance with our standards and consistent with the image of a Degree Wellness Studio franchise as an efficiently operated business offering high quality services, and observing the highest standards of cleanliness, sanitation, efficient, courteous service and pleasant ambiance, and in that connection will take, without limitation, the following actions during the Term of this Agreement: (1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete equipment, furniture, furnishings and signs;
- c. you will not make any material alterations to the Premises or the appearance of the Franchise, as originally developed, without our advance written approval. If you do so, we have the right, at our option and at your expense, to rectify alterations we have not previously approved;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement stipulates that the premises must be used solely for the operation of the Degree Wellness Studio. This is explicitly stated in both the agreement between the franchisor, franchisee, and landlord, as well as within the Degree Wellness franchise operating standards. This means a franchisee cannot operate any other type of business or activity from the Degree Wellness location.
This restriction ensures that the Degree Wellness brand and business model are consistently maintained across all franchise locations. It prevents franchisees from diluting the brand by offering unrelated products or services from the same site. This requirement helps to maintain a uniform image and customer experience, which is a common practice in franchising.
Furthermore, the franchisee is responsible for maintaining the condition and appearance of the premises to meet Degree Wellness's standards. This includes regular cleaning, repairs, and updates to ensure the studio reflects the high-quality image of the brand. Any alterations to the premises require the franchisor's written approval, and Degree Wellness reserves the right to rectify unapproved changes at the franchisee's expense. This level of control allows Degree Wellness to ensure brand consistency and quality control across all franchised locations.