What is a 'Site Selection Area' 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").
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, a 'Site Selection Area' is a defined area where a qualified third party (Developer) is granted the right to develop a certain number of Degree Wellness Studios. The Developer must strictly adhere to the terms of the Development Agreement, and each Studio within the Site Selection Area must be opened and operated utilizing Degree Wellness's Marks and System, as outlined in a separate Franchise Agreement. The Site Selection Area is further described by geographic boundaries in an attachment to the Development Agreement.
Prospective Degree Wellness franchisees should understand that the Site Selection Area is non-exclusive, meaning they do not have exclusive territorial rights within that area. They are expected to use their best efforts to find a suitable site for their Degree Wellness studio within this area. The franchisor must find the proposed site acceptable, meeting their standards for location, neighborhood, size, traffic patterns, parking, layout, and other physical characteristics.
Degree Wellness requires the franchisee to identify a mutually agreeable site within 120 days of the agreement date. The franchisor currently requires the premises to be a minimum of 1,800 square feet. If a mutually agreeable site is not identified within this timeframe, Degree Wellness may terminate the agreement. Once a site is approved, the franchisee must obtain lawful possession of the premises through lease or purchase within 180 days of the agreement date. Degree Wellness may also require advance written approval of the lease terms.
It is important to note that Degree Wellness's review and/or approval of lease terms does not constitute a guarantee of the studio's success at that location, nor does it make Degree Wellness liable under the lease. The franchisee bears the responsibility for the studio's performance and adherence to the franchise agreement terms within the Site Selection Area.