How is the Site Selection Area defined in the Degree Wellness Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor grants qualified third parties the right to develop a certain number of Studios within a defined site selection area (the "Site Selection Area") in accordance with the terms of this Agreement to which Developer must be strictly adhere, with each Studio within the Site Selection Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then-current form of franchise agreement (each, a "Franchise Agreement").
DATA SHEET
- Development Agreement, is described below (or an attached map) by geographic boundaries and will consist of the following area or areas: Site Selection Area.
- 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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Site Selection Area is a defined area where a developer has the right to develop a certain number of Degree Wellness Studios, as outlined in the Development Agreement. The specific geographic boundaries of the Site Selection Area are detailed either in the agreement itself or on an attached map.
For a prospective Degree Wellness franchisee, understanding the Site Selection Area is crucial because it dictates where they can propose locations for their studio. The FDD states that the franchisee must use their best efforts to find a site within the Site Selection Area identified in Exhibit 1 of the Franchise Agreement. However, this area is non-exclusive, meaning Degree Wellness can still operate or franchise other locations within the same area.
Furthermore, the franchisee must have a site acceptable to Degree Wellness within 120 days of signing the agreement. The franchisor's approval will not be unreasonably withheld if the site meets their standards for location, neighborhood, size, traffic patterns, parking, layout, and other physical characteristics. Failure to secure a mutually agreeable site within this timeframe may result in the termination of the agreement.
Overall, while the Site Selection Area provides a starting point for location scouting, it does not guarantee exclusivity or approval. Franchisees need to conduct thorough due diligence to identify a suitable site that meets Degree Wellness's criteria and aligns with their business goals, all within a limited timeframe.