What is a Degree Wellness 'Studio'?

• A. Degree Wellness Franchise, LLC, or its affiliates, and their successors or assigns ("Franchisor") franchises the operation of a studio, (each "Degree Wellness Studio" or "Studio") featuring innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health, and offers related products and merchandise under the name Degree Wellness and/or other trademarks, service marks, logos, and other indicia of origin prescribed by Franchisor (collectively, the "Proprietary Marks").

1.2 The Franchise System.

• a. Through the expenditure of considerable time, effort and money, we and our affiliates have devised a system for the establishment and operation of a Degree Wellness business model that specializes in innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health and other related services and products (all of which we refer to in this Agreement as the "System"). The System includes procedures, specifications, techniques and procedures that we may designate for operating a wellness business. This business model includes a studio model offering all of our franchised services and products (individually, a "Studio" or "Studio," and collectively, the "Studios" or "Studios"). Subject to an additional fee, we also offer additional programs, products and services as more fully described herein, which additional programs, products and services may change from time to time. We identify the System by the use of certain trademarks, service marks and other commercial symbols, including the marks "Degree Wellness," and certain associated designs, artwork and logos, which we may change or add to from time to time (the "Marks").
• b. From time to time we grant to persons who meet our qualifications, franchises to own and operate a Degree Wellness Studio in accordance with the System in a specified geographic territory. This

Agreement is being presented to you because of the desire you have expressed to obtain the right to develop, own, and be franchised to operate a Degree Wellness Studio (we refer to your Degree Wellness franchise hereinafter as the "Franchise" or the "Franchised Business").

c. In certain cases, where permitted by law, we may offer franchises to persons or legal entities that meet our qualifications but are not licensed to practice or provide health related care, and are willing to undertake the investment and effort to own and operate a business that will manage a Studio under the System; we refer to these businesses as "Studio Management Businesses."

Source: Item 23 — Receipts (FDD pages 66–257)