What section of the Degree Wellness franchise agreement outlines the requirements for site approval and leasing or purchasing premises?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
3. DEVELOPMENT AND OPENING OF THE FRANCHISE
- 3.1 Site Selection Area; Site Approval; Lease or Purchase of Premises.
- You will use your best efforts to seek and select a proposed site for the Premises. The Premises must be location within the Site Selection Area identified in Exhibit 1. The Site Selection Area is non-exclusive and you have no territorial rights to it. A Premises that is acceptable to us as suitable for the operation of the Franchise must be identified and within 120 days of the date of this Agreement. We currently require the Premises to be a minimum of 1,800 square feet in size. You must submit to us, in the form we specify, a description of the site and such other information or materials as we may reasonably require. We will not unreasonably withhold approval of a site that meets our standards for general location and neighborhood, size, traffic patterns, parking size, layout and other physical characteristics, for Studios. If you fail to identify a mutually agreeable site within the aforementioned 120 day period, we may terminate this Agreement. You may not relocate your Studio to a different site in your Protected Territory without our approval.
- a. Once we have approved the proposed site of the Premises for your Franchise, you must obtain lawful possession of the Premises through lease or purchase within 180 days of the date of this Agreement. You agree that we may require you to obtain our advanced written approval of your lease's terms. The lease for the Premises must, if we require it, permit us to take possession of the Premises under certain conditions if this Agreement is terminated.
- b. Our review and/or approval of your lease terms, or our failure to do so, shall not constitute, nor be deemed, a judgment or guaranty as to the likelihood of success of a Studio at such location, or as to
the relative desirability of such location in comparison to other locations within the Protected Territory, nor shall it be deemed to make us liable in any way under any such lease.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, section 3.1, titled "Site Selection Area; Site Approval; Lease or Purchase of Premises" of the franchise agreement outlines the requirements for site approval and leasing or purchasing premises.
Specifically, franchisees are expected to use their best efforts to find and select a site for their Degree Wellness studio within the Site Selection Area identified in Exhibit 1. The franchisor requires the premises to be a minimum of 1,800 square feet. Franchisees must submit a description of the site and any other required information to Degree Wellness for approval. Degree Wellness states that it will not unreasonably withhold approval of a site that meets its standards for general location and neighborhood, size, traffic patterns, parking size, layout, and other physical characteristics. If a mutually agreeable site is not identified within 120 days of the agreement date, Degree Wellness may terminate the agreement.
Once Degree Wellness approves the proposed site, the franchisee must obtain lawful possession of the premises through lease or purchase within 180 days of the agreement date. Degree Wellness may require advanced written approval of the lease terms and may also require the lease to permit Degree Wellness to take possession of the premises under certain conditions if the agreement is terminated. However, Degree Wellness states that its review or approval of the lease terms does not constitute a judgment or guarantee of the success of the studio at that location, nor does it make Degree Wellness liable in any way under the lease.