What methods can Degree Wellness use to determine if a franchisee is complying with the franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Condition and Appearance of the Franchise. You agree that:
- a. neither the Franchise nor the Premises will be used for any purpose other than the operation of the Franchise in compliance with this Agreement;
- b. you will maintain the condition and appearance of the Franchise; its equipment, furniture, furnishings, and signs; and the Premises in accordance with our standards and consistent with the image of a Degree Wellness Studio franchise as an efficiently operated business offering high quality services, and observing the highest standards of cleanliness, sanitation, efficient, courteous service and pleasant ambiance, and in that connection will take, without limitation, the following actions during the Term of this Agreement: (1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete equipment, furniture, furnishings and signs;
- c. you will not make any material alterations to the Premises or the appearance of the Franchise, as originally developed, without our advance written approval. If you do so, we have the right, at our option and at your expense, to rectify alterations we have not previously approved;
- d. you will promptly replace or add new equipment when we reasonably specify in order to meet changing standards or new methods of service;
- e. on notice from us, you will engage in remodeling, expansion, redecorating and/or refurnishing of the Premises and the Franchise to reflect changes in the operations of Degree Wellness franchises that we prescribe and require of new franchisees, provided that (1) no material changes will be required unless there are at least 2 years remaining on the Initial Term or any renewal Term of this Agreement (all actual changes will be subject to our approval); and (2) we have completed the proposed change in at least twenty-five percent (25%) of all similarly situated Degree Wellness and affiliate-owned Degree Wellness Studios, if there are any, and have undertaken a plan to make the proposed change in the balance of such Degree Wellness and affiliate-owned Studios;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Degree Wellness has several avenues to ensure franchisees adhere to the franchise agreement. One key aspect is maintaining the studio's condition and appearance. Franchisees must keep their studios, equipment, furniture, and signs in line with Degree Wellness's standards, ensuring cleanliness, efficient service, and a pleasant atmosphere. This includes regular cleaning, repainting, and repairs. Degree Wellness also requires franchisees to use the premises solely for operating the franchise.
Degree Wellness retains control over alterations and upgrades to the studio. Franchisees cannot make significant changes to the premises without prior written approval from Degree Wellness. The company can also mandate new equipment or remodeling to meet evolving standards, provided certain conditions are met, such as having at least two years remaining on the franchise term and implementing the changes in a significant portion of existing Degree Wellness studios.
Furthermore, Degree Wellness emphasizes the protection of confidential information and restricts franchisees from engaging in competitive businesses. Franchisees and their related parties are prohibited from having interests in businesses offering similar products or services to Degree Wellness. They are also barred from making negative statements about Degree Wellness or soliciting the franchise's clients. These measures collectively enable Degree Wellness to monitor and enforce compliance with the franchise agreement, safeguarding brand standards and protecting its business interests.