Can Degree Wellness require franchisees to replace or add new equipment?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. you will promptly replace or add new equipment when we reasonably specify in order to meet changing standards or new methods of service;
- e. on notice from us, you will engage in remodeling, expansion, redecorating and/or refurnishing of the Premises and the Franchise to reflect changes in the operations of Degree Wellness franchises that we prescribe and require of new franchisees, provided that (1) no material changes will be required unless there are at least 2 years remaining on the Initial Term or any renewal Term of this Agreement (all actual changes will be subject to our approval); and (2) we have completed the proposed change in at least twenty-five percent (25%) of all similarly situated Degree Wellness and affiliate-owned Degree Wellness Studios, if there are any, and have undertaken a plan to make the proposed change in the balance of such Degree Wellness and affiliate-owned Studios;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees may be required to replace or add new equipment. Degree Wellness retains the right to specify when franchisees must promptly replace or add new equipment to meet changing standards or new methods of service. This clause ensures that all Degree Wellness franchises remain up-to-date with the latest industry standards and service methodologies.
Furthermore, Degree Wellness can mandate remodeling, expansion, redecorating, and/or refurnishing of the premises to reflect changes in the operations of Degree Wellness franchises. However, these material changes are subject to certain conditions. First, there must be at least two years remaining on the Initial Term or any renewal term of the Franchise Agreement. Second, Degree Wellness must have already implemented the proposed change in at least 25% of all similarly situated Degree Wellness and affiliate-owned Degree Wellness Studios and have a plan to implement the change in the remaining studios.
These stipulations ensure that franchisees are not subjected to frequent or arbitrary demands for significant capital expenditures. Instead, Degree Wellness must demonstrate a commitment to the proposed changes by implementing them across a substantial portion of its existing locations before requiring franchisees to adopt them. This approach balances the need for brand consistency and modernization with the financial realities of operating a Degree Wellness franchise.