For a Degree Wellness Studio franchise, who is eligible to purchase a Studio franchise?

y 23, 2024.

Studio Franchises. We franchise the right to operate a single Studio that must be physically located in a designated geographic area (the "Protected Territory") under the "Degree Wellness" name and other authorized names and marks (the "Marks"), using a system of distinctive operating procedures, methods, and standards that we have developed (the "System"). Studio franchises will only be offered and sold to individuals licensed to practice or provide health care unless otherwise permitted by law, or unless you operate a Studio as a Studio Management Business (as defined below). You will sign our standard franchise agreement attached as Exhibit B (the "Franchise Agreement") when you purchase your Studio franchise.

Multi-Unit Offering. We may offer qualified individuals and entities the right to open and operate multiple Studios within a mutually-agreed upon geographical area (the "Site Selection Area") under our current form of area development agreement that is attached to this Disclosure Document as Exhibit C (the "Development Agreement"), which will also outline a schedule or defined period of time in which you must open and commence operating each Studio (a "Development Schedule"). You will sign a Franchise Agreement for the initial Studio you commit to develop within your Development Area at the same time you sign your Development Agreement, and you will eventually need to sign our then-current form of franchise agreement for each of the Studios you open under the Development Schedule that may contain materially different terms than your initial form of agreement. If we award you multi-unit development rights under a Development Agreement, your Site Selection Area, Development Schedule and Development Fee will vary based on the number of franchises you commit and are awarded the right to develop.

The Market and Competition

Your Studio will compete with other businesses in the health and wellness market. These competitors may include independent or franchised businesses offering some or all of the same services. The wellness sector is competitive in most markets. Despite this competition, we believe that Degree Wellness Studios will appeal to customers because of the brand, the unique combination of services offered, a reputation for authenticity and trustworthiness, the pricing model, and other distinctive characteristics. While you will provide your products and services to the general public, your target market will be female heads of household, who typically preside over both household budget and health and wellness decisions. We believe this is a large and important, yet underserved market. As a female-founded brand, Degree Wellness is uniquely positioned to serve this market.

Industry-Specific Laws and Regulations

Many states and local jurisdictions have enacted laws, rules, regulations and ordinances that may apply to the operation of your Degree Wellness franchise. For example, state licensing and certification requirements may apply to persons who perform services for you or at your Studio location, or to the legal structure of your business. These laws and regulations may also impose

restrictions on referrals for designated health services to entities with which you have financial relationships.

Certain states prohibit the corporate practice of medicine. This means that such states prohibit a lay-person from owner any facility that offers medical services.

Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)