Is the Site Selection Area for a Degree Wellness franchise exclusive?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 granted to a franchisee is non-exclusive. This means that while a franchisee is expected to find a location for their Degree Wellness studio within a defined Site Selection Area, Degree Wellness does not guarantee that the franchisee will be the only Degree Wellness location within that area.
This non-exclusivity has significant implications for prospective franchisees. It means that Degree Wellness could potentially grant another franchise the right to operate a studio within the same Site Selection Area as an existing franchisee. This could lead to increased competition between Degree Wellness locations, potentially impacting the revenue and profitability of individual franchisees.
Furthermore, the FDD states that the franchisee has no territorial rights to the Site Selection Area. This reinforces the fact that Degree Wellness retains the right to establish other franchises or operate its own locations within the same area. Therefore, it is crucial for potential franchisees to carefully consider the market potential and competitive landscape within their assigned Site Selection Area before investing in a Degree Wellness franchise.
Prospective franchisees should inquire about Degree Wellness's criteria for awarding additional franchises within a Site Selection Area, as well as the company's strategy for managing potential conflicts between franchisees operating in close proximity.