If a Degree Wellness development agreement involves purchasing 4 or more studios, how is the Development Period for each successive studio determined?

According to Degree Wellness's 2025 Franchise Disclosure Document, the determination of the Development Period for each successive studio under a development agreement involving the purchase of four or more studios is not unilaterally set by Degree Wellness. Instead, the Development Period for each studio is to be mutually agreed upon between Degree Wellness and the franchisee at the time the development agreement is entered into. This suggests a degree of flexibility and negotiation in setting the development schedule for franchisees committing to a larger number of studios.

This approach differs from the standard development schedule provided for agreements involving three or fewer units, where the FDD specifies the number of studios to be opened within defined timeframes. The 'TBD' (to be determined) notation in the table highlights that the development schedule is not pre-set for larger development agreements. This could be advantageous for franchisees who may have specific market conditions or resource constraints that require a more customized development timeline.

Prospective Degree Wellness franchisees considering a multi-unit development agreement should engage in detailed discussions with Degree Wellness to understand the factors that will influence the determination of the Development Period. This includes understanding Degree Wellness's expectations regarding the pace of development, the support and resources available to facilitate rapid expansion, and any potential penalties or incentives associated with meeting the agreed-upon development schedule. This negotiation is a critical step in ensuring that the development agreement aligns with the franchisee's capabilities and strategic objectives.