What is the length of the initial franchise term for a Degree Wellness studio?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1 Term; Reference to Exhibit 1. You have applied for a franchise to own and operate a Degree Wellness Studio, and we have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you
- a Franchise to operate a Studio offering all products, services, and proprietary programs of ours in accordance with all elements of the System, that we may require for Degree Wellness Studios.
You must operate the Franchise at a mutually agreeable site (the "Premises") to be identified after the signing of this Agreement, and to use the System and the Marks in the operation of that Franchise, for an "Initial Term" of 10 years.
The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement.
To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1.
Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise and the rights you received in connection with the Franchise, including your rights to use the Marks or any portion of the Confidential Information (defined below).
All references to the "Term of this Agreement" refer to the period from the Agreement Date to the date on which this Agreement actually terminates or expires.
- 2.2 Full Term Performance.
You specifically agree to be obligated to operate the Franchise, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the business of the Franchise for the entire Initial Term, and any subsequent renewal or extension of the Term of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the initial franchise term is 10 years. The term begins on the agreement date unless the franchise is being transferred, in which case the transfer agreement determines the length of the initial term. The expiration date of the initial term is listed on Exhibit 1 of the Franchise Agreement.
Degree Wellness requires franchisees to operate the franchise and meet the obligations of the agreement for the entire initial term, as well as any subsequent renewals or extensions. Franchisees must exert their best efforts to promote the business of the franchise continuously.
Upon termination or expiration of the agreement, the franchise and all associated rights, including the use of trademarks and confidential information, are also terminated. The 'Term of this Agreement' refers to the period from the agreement date until the actual termination or expiration date.
This information is important for prospective franchisees as it outlines the duration of their commitment and the conditions under which the franchise operates. Understanding the initial term and renewal conditions is crucial for long-term business planning and investment decisions.