Can Degree Wellness require advanced written approval of the lease terms for the Premises?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has the right to approve the site for the studio. If the studio premises will be occupied pursuant to a commercial lease, Degree Wellness has prescribed certain lease terms and has the right to condition its approval of a proposed site on inclusion of the prescribed lease terms.

This means that a prospective Degree Wellness franchisee must obtain approval from Degree Wellness regarding the location of their studio. Furthermore, if the location is to be leased, Degree Wellness has the right to dictate specific lease terms that must be included in the commercial lease agreement. The approval of the site can be conditional based on these lease terms.

This requirement ensures that Degree Wellness maintains control over the locations and lease agreements of its franchises, which can help protect the brand's image and ensure consistency across all locations. However, it also means that franchisees have less flexibility in negotiating lease terms and selecting locations, as they must adhere to Degree Wellness's requirements. Franchisees should carefully review these prescribed lease terms and consider their potential impact on their business before signing a franchise agreement.