What is outlined in the Degree Wellness Development Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, the Development Agreement outlines the schedule or defined period for opening and operating multiple studios within a mutually agreed-upon geographical area, referred to as the "Site Selection Area." This agreement is offered to qualified individuals and entities who are granted the right to develop multiple Degree Wellness studios.
The Development Agreement also stipulates that a franchisee must sign a Franchise Agreement for the initial studio they commit to developing within their Site Selection Area at the same time they sign the Development Agreement. For each subsequent studio opened under the Development Schedule, the franchisee will need to sign Degree Wellness's then-current form of franchise agreement, which may contain terms that differ materially from the initial agreement.
The FDD specifies that the Site Selection Area, Development Schedule, and Development Fee will vary based on the number of franchises the franchisee commits to developing. This implies that Degree Wellness tailors these key terms to the scope of the multi-unit development project, potentially offering more favorable terms for larger commitments. Prospective franchisees should carefully review the Development Agreement and understand the obligations and timelines for opening multiple Degree Wellness studios.