What page of the Degree Wellness franchise agreement discusses the computer system required for the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
- c. Your full implementation of our computer system and software requirements, including our designated billing system, is a crucial part of your Studio's start-up and operation, and you and we agree that the Computer System requirements are a top priority. Accordingly, if you do not fully implement our designated Computer System, including required software (called "going live") within acceptable timeframes, you will be required to pay additional fees to us, as follows:
- o If you have not "gone live" within two (2) months after the conclusion of your initial training program, you will be required to pay a fee of $500.00 per month for each month thereafter, due and payable on the first (1st) day of each calendar month in such period with no pro-rations for partial months; and
- o If you have not "gone live" within six (6) months, the fee will be increased to $1,000.00 per month commencing within the sixth (6th) month after the conclusion of the initial training program.
Nothing in this paragraph shall prohibit us from exercising our rights and remedies under Section 15 or any other provision of this Agreement.
- Degree Wellness also requires you to maintain a dedicated high-speed internet service or connection or other communication means for remote access and information retrieval by us, as we may specify from time to time in the Operations Manual or otherwise in writing.
- e. We are not responsible or liable for any actual, alleged, or perceived defects or deficiencies in the Computer System, any components thereof, Service Provider(s), or any required third-party software, or the performance of any of the forgoing.
- 3.5 Equipment, Furniture, Fixtures, Furnishings and Signs. You agree to use in the development and operation of the Franchise only those brands, types, and/or models of equipment, furniture, fixtures, furnishings, and signs we have approved.
- 3.6 Franchise Opening. You agree not to open the Franchise for business until: (1) all of your obligations under Paragraphs 3.1 through 3.4 of this Section have been fulfilled (including, without
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 FDD, Item 23 discusses the computer system and software requirements for a Degree Wellness franchise. However, the FDD excerpts provided do not include page numbers. Item 23(c) states that the full implementation of the computer system, including the designated billing system, is crucial for the studio's start-up and operation. If a franchisee does not fully implement the designated computer system, including required software, within acceptable timeframes, they will be required to pay additional fees. Specifically, if the franchisee has not "gone live" within two months after the conclusion of their initial training program, they will be required to pay a fee of $500.00 per month. If the franchisee has not "gone live" within six months, the fee increases to $1,000.00 per month, commencing within the sixth month after the conclusion of the initial training program. Degree Wellness also requires franchisees to maintain a dedicated high-speed internet service or connection for remote access and information retrieval. Degree Wellness is not responsible or liable for any defects or deficiencies in the computer system, its components, service providers, or any required third-party software.
Item 23(b) mentions that Degree Wellness may contract with software providers or business service providers to provide software and related services for the computer system. Franchisees may be required to sign a service agreement with Degree Wellness or a third-party service provider, which includes terms related to installation, licensure, payments, liability, confidential information, and other conditions. The terms and conditions of any such service agreement are incorporated by reference into the Franchise Agreement as Additional Terms and Conditions, and a copy of the service agreement will be attached to the agreement as Exhibit 4.
Prospective franchisees should note that the timely implementation of the computer system is critical, and failure to do so can result in significant monthly fees. The franchisee bears the responsibility for ensuring the computer system is fully operational within the specified timeframes. Additionally, franchisees should carefully review any service agreements related to the computer system, as these agreements contain important terms and conditions that affect their obligations and liabilities. Since the FDD excerpts do not include page numbers, a prospective franchisee should consult the full FDD document to find the specific page numbers for these sections.