What is the name of the document attached to the Degree Wellness Franchise Agreement that owners must sign?

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. If we award you multi-unit development rights under a Development Agreement, your Site Selection Area, Development Schedule and Development Fee will vary based on the number of franchises you commit and are awarded the right to develop.

The Market and Competition

Your Studio will compete with other businesses in the health and wellness market. These competitors may include independent or franchised businesses offering some or all of the same services. The wellness sector is competitive in most markets. Despite this competition, we believe that Degree Wellness Studios will appeal to customers because of the brand, the unique combination of services offered, a reputation for authenticity and trustworthiness, the pricing model, and other distinctive characteristics. While you will provide your products and services to the general public, your target market will be female heads of household, who typically preside over both household budget and health and wellness decisions. We believe this is a large and important, yet underserved market. As a female-founded brand, Degree Wellness is uniquely positioned to serve this market.

Industry-Specific Laws and Regulations

Many states and local jurisdictions have enacted laws, rules, regulations and ordinances that may apply to the operation of your Degree Wellness franchise. For example, state licensing and certification requirements may apply to persons who perform services for you or at your Studio location, or to the legal structure of your business. These laws and regulations may also impose

restrictions on referrals for designated health services to entities with which you have financial relationships.

Certain states prohibit the corporate practice of medicine. This means that such states prohibit a lay-person from owner any facility that offers medical services. The only medical service we offer is IV hydration and IM injections, all other services are wellness oriented and do not constitute the practice of medicine. Such non-medical services include: cryotherapy, cold plunge, infrared sauna, red light therapy, oxygen therapy, compression massage, and halotherapy.

Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 48–49)