Who is responsible for acquiring the site for the Degree Wellness Management Company and Licensed Provider?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Acquiring the site for Management Company and Licensed Provider to provide their respective services for the operation of the Studio under this Agreement (the "Premises").
The Premises shall comply in all respects with Degree Wellness's System requirements.
Management Company shall perform all tenant responsibilities under the lease agreement for the Premises (or similar responsibilities if Management Company owns the Premises), including, but not limited to, paying rent, acquiring and maintaining connections to utilities, phone and internet services, and performing, or causing to be performed, maintenance, repair, replacement, and janitorial services;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Company is responsible for acquiring the site, referred to as the "Premises", for both the Management Company and the Licensed Provider. The acquired site must comply with Degree Wellness's System requirements.
This means that as a Degree Wellness franchisee (Management Company), you are responsible for finding and securing a location that meets the brand's standards. This includes negotiating the lease agreement and handling all tenant responsibilities, such as paying rent and maintaining utilities. The Licensed Provider, while operating at the same location, relies on the Management Company to provide the physical space.
This arrangement places the onus of site selection and management on the Management Company, which is the franchisee. The Licensed Provider's focus remains on providing health and wellness services. The Management Company also grants the Licensed Provider a license to use the premises during the agreement term. However, this license does not create a landlord-tenant relationship between the Management Company and Licensed Provider.
Prospective franchisees should carefully consider the implications of this responsibility, including the time and resources required to find a suitable location and manage the lease. It is important to understand Degree Wellness's System requirements for the premises to ensure compliance and avoid potential issues down the line.