Who is responsible for paying rent and maintaining utilities for the Degree Wellness Premises?
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 paying rent and maintaining utilities for the Degree Wellness Premises. The Management Company's responsibilities include performing all tenant responsibilities under the lease agreement, such as paying rent and acquiring and maintaining connections to utilities, phone, and internet services. They are also responsible for performing or arranging for maintenance, repair, replacement, and janitorial services for the premises.
This means that as a Degree Wellness Licensed Provider, you will not be directly responsible for these costs or tasks related to the physical location. Instead, the Management Company handles these aspects of the business. This arrangement can simplify operations for the Licensed Provider, allowing them to focus on providing health and wellness services.
However, it is important for a prospective Degree Wellness Licensed Provider to understand the terms of the agreement between the Management Company and Degree Wellness regarding the premises. It would be prudent to review the lease agreement and understand the obligations of the Management Company to ensure the premises are adequately maintained and that utility services are consistently provided. Any disruptions in these services could impact the Licensed Provider's ability to deliver services and affect the overall operation of the studio.