Does Degree Wellness have the right to poll a franchisee's computer system?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
b. Software. We may, at any time and from time to time, contract with one or more software providers, business service providers, or other third parties (individually, a "Service Provider") to develop, license, or otherwise provide to or for the use and benefit of you and other Degree Wellness Franchises certain software, software applications, and software maintenance and support services related to the Computer System that you must or may use in accordance with our instructions with respect to your Computer System. Any such agreement between us and a Service Provider (a "Master Service Agreement") may, but need not, address such matters as the types of products and services to be provided (or not to be provided) to you or for your benefit as a Degree Wellness Franchise, the manner and timing in which such products and services may be provided, software licensing issues and restrictions, the permitted or non-permitted uses of any product or service provided under the Master Service Agreement, and the provision and pricing of supplemental products or services available from or through the Service Provider. You acknowledge and agree that we may reasonably require you to sign a support or service agreement with us or a third party Service Provider setting forth, among other things, requirements relating to the installation of any such products or services, licensure of and/or the manner in which you may use any such products or services, payments and taxes, liability and indemnification of us and/or the Service Provider, confidential information and proprietary rights, suspension or termination of products or services provided thereunder, assignment of rights and delegation of duties thereunder, governing law and jurisdiction, pricing, and supplemental products and services available to or for
the benefit of Degree Wellness Studio Franchises (a "Service Agreement") that we may deem appropriate, and shall sign any such Service Agreement upon the earlier of signing this Agreement or promptly after receiving notice from us about our requirement for your to sign the Service Agreement. [The terms and conditions of any such Service Agreement are hereby incorporated herein by reference (the "Additional Terms and Conditions"). A copy of any such Service Agreement shall be attached to this Agreement as Exhibit 4.]
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness may contract with third-party service providers to offer software related to the computer systems franchisees use. Degree Wellness may require franchisees to sign a service agreement with Degree Wellness or a third-party service provider. This agreement may address the types of products and services provided, the manner and timing of those services, software licensing issues, permitted uses, and the provision and pricing of supplemental products or services.
This means that as a Degree Wellness franchisee, you may be required to use specific software and computer systems dictated by Degree Wellness. You might also have to enter into a separate agreement with a third-party vendor for software or support services related to these systems. The terms of these agreements, including costs, usage restrictions, and liability, will be binding.
It is important for a prospective Degree Wellness franchisee to understand the extent to which Degree Wellness can mandate the use of specific computer systems and software. Furthermore, it is important to understand the potential costs and obligations associated with these systems, including any service agreements with third-party providers. A prospective franchisee should inquire about the specific types of data Degree Wellness can access through these systems and how that data is used.