If I have a Development Agreement with Degree Wellness, what determines the time period I have to open each franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
plans and specifications. Our waiver or failure to strictly enforce any such requirements for plans, specifications, décor, etc. shall not constitute a waiver of any other term or provision of this Agreement or The failure by us to discharge any duty to you with respect to your office Premises.
3.3 Development of the Franchise
a. You agree at your own expense to do the following (i) within 12 months of the date of this Agreement, or (ii) if you sign this Agreement pursuant to the purchase of a Development Agreement, by the Opening Deadline defined in Exhibit 1:
- (1) secure all financing required to fully develop the Franchise;
- (2) obtain all required building, utility, sign, health, sanitation and business permits and licenses and any other required permits and licenses;
- (3) construct the Franchise location according to the construction plans and specifications we have provided and/or approved;
- (4) decorate the Franchise location in compliance with plans and specifications we have provided and/or approved;
- (5) purchase and install all required equipment, furniture, furnishings and signs prior to commencing operations;
- (6) cause all the training requirements of Section 4 to be completed prior to commencing operations;
- (7) purchase an opening inventory of products and other supplies and materials prior to commencing operations;
- (8) provide proof prior to commencing operations, in a form satisfactory to us, that your operation of the Franchise at the Franchise location does not violate any applicable state or local zoning or land use laws, ordinances, or regulations, or any restrictive covenants that apply to such location;
(9) provide proof prior to commencing operations, in a form satisfactory to us, that you (and/or your General Manager, as defined in Section 4.1, if any) are legally authorized and have all licenses necessary to perform all of the services to be offered by your Franchise, and that your organizational structure is consistent with all legal requirements;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if you sign the Franchise Agreement as part of purchasing a Development Agreement, the deadline for opening your Degree Wellness franchise is determined by the 'Opening Deadline' as defined in Exhibit 1 of the Development Agreement.
Specifically, within 12 months of the agreement date, or by the Opening Deadline in Exhibit 1 if you purchased the agreement through a Development Agreement, you must secure financing, obtain permits and licenses, construct and decorate the location per Degree Wellness's plans, purchase and install equipment, complete training, purchase initial inventory, provide proof of zoning compliance, ensure legal authorization for services, utilize marketing programs, obtain stationery, acquire insurance, and fulfill any other requirements to open and operate the franchise. You must also obtain Degree Wellness's approval to open the franchise for business.
Attachment A to the Development Agreement includes a data sheet that specifies the 'Site Selection Area' and the 'Development Schedule'. The Development Schedule outlines the 'Expiration of Development Period,' the 'No. of New Studios Opened Within Development Period,' and the 'Cumulative No. of Studios that Must Be Open and Operating'. For example, the schedule states that 12 Months from the Effective Date, 1 new studio must be opened, resulting in a cumulative total of 1 studio operating. Months 13 through 24 require another studio to be opened, bringing the cumulative total to 2 studios. Months 24 through 36 require another studio to be opened, bringing the cumulative total to 3 studios.