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Where are the specifications for Studio location, leasehold improvements, and other items detailed for Degree Wellness franchisees?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

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Lease and Purchase Specifications and Requirements

You must lease or purchase your Studio location, leasehold improvements, computer and office equipment (including cash registers and computer hardware and software), equipment, fixtures, furnishings and decor, signage, insurance, inventory , clothing, branding, advertising and marketing materials and services, grand opening kit, training, supplies, programs and other items and services under our specifications as set forth in our Operations Manual for Studios – see Items 7 and 11. These specifications include standards for appearance, delivery, performance, quality control, and/or design.

You must lease or purchase your leasehold improvements, equipment, computer and billing system, equipment, inventory, marketing materials, supplies, services, products, and other items only from suppliers or designees approved by us. Our Operations Manual lists our approved suppliers. There may be items for which we or our affiliates are approved suppliers (see below).

You must obtain and maintain, at your own expense, the insurance coverage that we periodically require and satisfy other insurance-related obligations. You must purchase (1) comprehensive commercial general liability and motor vehicle liability insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate, (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by law, (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than

$1,000,000 per occurrence and $3,000,000 in the aggregate and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. Deductibles must be in reasonable amounts and are subject to review and written approval by us. Your commercial general liability insurance policy must be an "occurrence" policy. If any policy is written on a "Claims Made" basis, you must purchase and maintain unlimited tail coverage that shall remain in effect following the termination or expiration of the Franchise Agreement and/or such policy. All commercial general liability insurance and professional liability (malpractice) insurance policies you purchase must name us (and, if we so request, our members, directors, employees, agents, and affiliates) as additional insureds. If you fail to obtain or maintain the insurance we specify, we may (but need not) obtain the insurance for you and the Studio on your behalf (see Item 6). You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by us. The cost of your premiums will depend on the insurance carrier's charges, terms of payment, and your insurance and payment histories.

We also require you to maintain a dedicated high speed internet services or connection or other communication means for remote access and information retrieval by us, as we may specify from time to time in the Operations Manual or otherwise in writing. We do not specify a specific internet supplier.

We have contracted with third parties to provide web site design, maintenance, hosting, and search engine optimization for our franchises, and certain technology-related administrative expenses. You will be required to use all such services. You will pay us a fee for such services, and we will pay the third-party providers directly. The amount you pay us may be less or more than the amount we pay to the third-party providers and may be used to offset internal costs related to the stated purposes of this fee.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, the specifications for Studio location, leasehold improvements, and other items are detailed in the Operations Manual. Franchisees must adhere to Degree Wellness's specifications for various aspects of the business, including the Studio location, leasehold improvements, computer and office equipment, fixtures, furnishings, decor, signage, insurance, inventory, clothing, branding, advertising and marketing materials and services, grand opening kit, training, supplies and programs. These specifications encompass standards for appearance, delivery, performance, quality control, and design.

Degree Wellness requires franchisees to lease or purchase leasehold improvements, equipment, computer and billing systems, inventory, marketing materials, supplies, services, products, and other items only from approved suppliers or designees. The Operations Manual contains a list of these approved suppliers. Degree Wellness may approve a single supplier for any product or service and may concentrate purchases with one or more suppliers to potentially obtain lower prices or better support. Approval of a supplier may depend on factors such as delivery frequency, purchase concentration, service standards, and other criteria, and may be temporary pending continued evaluation.

Degree Wellness also requires franchisees to use their designated supplier for site selection assistance and construction project management. The site for the Studio must meet Degree Wellness's criteria and receive their approval. If the Studio is leased, the lease terms must align with Degree Wellness's specifications. If a franchisee wishes to use an unapproved supplier, they must submit a written request for approval, which may involve inspections, product samples, and an evaluation fee. Degree Wellness will then approve or disapprove the supplier within 60 days of receiving all required information. Degree Wellness reserves the right to re-inspect approved suppliers and revoke approval if they no longer meet the criteria. However, the specific criteria for approving suppliers are not currently available to franchisees for review.

It is important to note that Degree Wellness may receive revenue or other consideration from suppliers for goods or services that franchisees are required or advised to obtain from approved suppliers. Degree Wellness negotiates price terms and purchase arrangements with suppliers for some items, including clothing, marketing materials, services, and equipment. Franchisees should be aware of these arrangements and the potential for Degree Wellness to benefit from their purchases.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.