What is the name of the agreement that Degree Wellness franchisees sign when purchasing a Studio franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Studio Franchises. We franchise the right to operate a single Studio that must be physically located in a designated geographic area (the "Protected Territory") under the "Degree Wellness" name and other authorized names and marks (the "Marks"), using a system of distinctive operating procedures, methods, and standards that we have developed (the "System"). Studio franchises will only be offered and sold to individuals licensed to practice or provide health care unless otherwise permitted by law, or unless you operate a Studio as a Studio Management Business (as defined below). You will sign our standard franchise agreement attached as Exhibit B (the "Franchise Agreement") when you purchase your Studio franchise.
Multi-Unit Offering. We may offer qualified individuals and entities the right to open and operate multiple Studios within a mutually-agreed upon geographical area (the "Site Selection Area") under our current form of area development agreement that is attached to this Disclosure Document as Exhibit C (the "Development Agreement"), which will also outline a schedule or defined period of time in which you must open and commence operating each Studio (a "Development Schedule"). You will sign a Franchise Agreement for the initial Studio you commit to develop within your Development Area at the same time you sign your Development Agreement, and you will eventually need to sign our then-current form of franchise agreement for each of the Studios you open under the Development Schedule that may contain materially different terms than your initial form of agreement.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, when purchasing a single-unit Studio franchise, franchisees will sign the standard franchise agreement, referred to as the "Franchise Agreement." This agreement is attached as Exhibit B to the FDD.
For those pursuing a multi-unit development agreement with Degree Wellness, the process involves signing two types of agreements. Initially, franchisees sign an area development agreement, known as the "Development Agreement," which is included as Exhibit C in the FDD. Simultaneously, they also sign a Franchise Agreement for the first Studio they commit to developing within their designated area.
It's important to note that the terms of the franchise agreement signed for subsequent studios opened under a development schedule may differ materially from the initial agreement. This means that franchisees should carefully review each franchise agreement as they expand their Degree Wellness business to understand any changes in obligations, fees, or operational requirements.