Are there geographic territory specifications for owning and operating a Degree Wellness Studio?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that the Franchise granted by this Agreement gives you the right to operate your Franchise only at the Premises.
Provided you are in full compliance with this Agreement, neither we nor our affiliates will operate or grant a franchise for the operation of another Studio franchise physically located within the territory described in Exhibit 1 (the "Protected Territory").
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the right to operate their Degree Wellness Studio only at a specific location, referred to as the Premises. Provided the franchisee is in full compliance with the agreement, Degree Wellness and its affiliates will not operate or grant a franchise for another Degree Wellness Studio physically located within the Protected Territory, which is described in Exhibit 1 of the Franchise Agreement.
This means that while franchisees are granted a protected territory, it is limited to the area described in Exhibit 1 around their specific studio location. This protection ensures that Degree Wellness will not establish another franchise nearby that could directly compete with an existing franchisee's business, provided the franchisee remains compliant with the franchise agreement.
Prospective franchisees should carefully review Exhibit 1 of the Franchise Agreement to understand the exact boundaries of their Protected Territory. It is important to understand the size and demographics of the protected territory, as well as any potential limitations or exceptions. This information is crucial for assessing the potential market and competition in the area.