From whom must Degree Wellness franchisees 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.
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 suppliers or designees approved by Degree Wellness. These approved suppliers are listed in the Degree Wellness Operations Manual, and may include Degree Wellness itself or its affiliates.
Degree Wellness has the right to designate itself or its affiliates as approved or exclusive suppliers for certain categories of products, services, and equipment. However, as of the FDD date, Degree Wellness is not an approved supplier for any product, service, or equipment, with the exception of DW Financial Services, LLC. The corporate practice of medicine doctrine restricts layperson-franchisees from determining the medical equipment and supplies to be used in the operation of the medical services provided in the Studio.
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. Degree Wellness will then approve or disapprove the proposed 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 franchisor's criteria. Degree Wellness negotiates price terms and other purchase arrangements with suppliers for franchisees for some items that Degree Wellness requires or suggests franchisees lease or purchase in developing and operating their Degree Wellness franchise, including clothing, marketing materials, services, and equipment.