Under the Degree Wellness Studio franchise, what is the designated geographic area called?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently offer two types of franchise offerings: Single unit Studio franchises and multi unit development agreements. We have offered these franchises since May 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.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the designated geographic area for a single-unit Degree Wellness Studio franchise is called the "Protected Territory." For franchisees who enter into a multi-unit development agreement, the designated geographic area is referred to as the "Site Selection Area."
For single-unit franchises, Degree Wellness grants franchisees the right to operate a Studio within their Protected Territory. This implies that Degree Wellness will not establish another franchised or company-owned location within that specific area, offering the franchisee a degree of exclusivity. The FDD states that the franchisee must have their studio physically located in the Protected Territory.
For multi-unit development agreements, Degree Wellness may offer qualified individuals the right to open and operate multiple Studios within a mutually agreed upon Site Selection Area. The specifics of the Site Selection Area, the Development Schedule, and the Development Fee will vary based on the number of franchises the franchisee commits to developing. This agreement is outlined in the Development Agreement, which is included as an exhibit in the FDD. Franchisees will sign a Franchise Agreement for their initial Studio and then sign subsequent agreements for each additional Studio they open under the Development Schedule, with the understanding that the terms of these later agreements may differ from the initial one.