What are the obligations of a Degree Wellness franchisee regarding the maintenance and upkeep of their studio (Item 9), considering the lease and purchase specifications outlined in Item 8?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Management Company shall perform all tenant responsibilities under the lease agreement for the Premises (or similar responsibilities if Management Company owns the Premises), including, but not limited to, paying rent, acquiring and maintaining connections to utilities, phone and internet services, and performing, or causing to be performed, maintenance, repair, replacement, and janitorial services;
- (b) Acquiring all fixtures, equipment, and furnishings necessary for the operation of a Degree Wellness Studio Management Business and the operation of the Studio, and maintaining, repairing, and replacing such fixtures, equipment, and furnishings;
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the maintenance and upkeep of their studio. The franchisee, or their management company, is responsible for all tenant responsibilities under the lease agreement. This includes paying rent and maintaining connections to utilities, phone, and internet services. They are also responsible for performing or arranging for maintenance, repairs, replacements, and janitorial services to keep the premises in good condition.
Degree Wellness franchisees are also responsible for acquiring and maintaining all necessary fixtures, equipment, and furnishings required to operate the studio. This includes repairing or replacing these items as needed to ensure the studio functions properly and meets Degree Wellness's standards. The FDD specifies that the franchisee must comply with Degree Wellness's System requirements for the premises. This means the studio must adhere to the franchisor's standards, specifications, operating procedures, and rules, also known as the "System Standards."
Furthermore, Degree Wellness requires franchisees to adhere to approved suppliers for real estate, equipment, fixtures, products, marketing materials, services, and computer hardware and software. The FDD estimates that these purchases from approved suppliers will represent approximately 50% of the franchisee's total expenditures in establishing and operating the Degree Wellness franchise. This requirement ensures consistency and quality across all Degree Wellness locations, but it also limits the franchisee's autonomy in choosing suppliers and potentially negotiating better deals. The Operations Manual contains the specifications, standards, and guidelines for all real estate, goods, and services that franchisees must obtain, and Degree Wellness will provide updates through amendments or supplements to the Operations Manual or other written materials.