How long is the term of the Degree Wellness Business Associate Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
2. GRANT OF FRANCHISE.
- 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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the length of the Business Associate Agreement is not explicitly stated. However, the document does state that the franchisee will operate under an "Initial Term" of 10 years.
While the excerpt does not specify the term length of the Business Associate Agreement, it does mention that the Business Associate Agreement is related to a separate Services Agreement. It is likely that the Business Associate Agreement's term is tied to the term of this Services Agreement, or possibly to the term of the franchise agreement itself, which is 10 years. The Business Associate Agreement is made between Wellness Provider Therapies, P.A., and the Business Associate, regarding the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
A prospective Degree Wellness franchisee should ask the franchisor about the term of the Business Associate Agreement and how it relates to the Services Agreement and the overall franchise agreement. Understanding the duration and renewal terms of all agreements is crucial for long-term business planning.