Does Degree Wellness reserve any rights not expressly granted to the Developer in the Development Agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness retains rights that are not explicitly given to the developer in the Development Agreement. Specifically, the document states that the rights granted are non-exclusive, meaning Degree Wellness and its affiliates can engage in activities not prohibited by the agreement. This reservation of rights allows Degree Wellness to pursue other business ventures or opportunities, even within the developer's site selection area, as long as those rights are not expressly granted to the developer in their agreement.

This aspect of the Development Agreement is important for potential developers to understand. While they are granted specific rights to develop a certain number of Degree Wellness studios within a defined area, Degree Wellness retains the flexibility to operate or franchise other concepts or businesses that do not directly conflict with those explicitly granted rights. This could include offering different services or products that don't fall under the Degree Wellness system but still operate within the same geographic area.

Prospective developers should carefully evaluate the scope of the rights granted to them versus the rights retained by Degree Wellness to fully understand the competitive landscape and potential for overlap. It is essential to have a clear understanding of what activities Degree Wellness could undertake that might impact the developer's business, even if those activities are not a direct breach of the Development Agreement. Developers should seek clarification from Degree Wellness regarding any potential future activities or business ventures that could affect their investment and market.