Within how many days of the Degree Wellness Franchise Agreement must a suitable Premises be identified?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1 Site Selection Area; Site Approval; Lease or Purchase of Premises.
- You will use your best efforts to seek and select a proposed site for the Premises. The Premises must be location within the Site Selection Area identified in Exhibit 1. The Site Selection Area is non-exclusive and you have no territorial rights to it. A Premises that is acceptable to us as suitable for the operation of the Franchise must be identified and within 120 days of the date of this Agreement. We currently require the Premises to be a minimum of 1,800 square feet in size. You must submit to us, in the form we specify, a description of the site and such other information or materials as we may reasonably require. We will not unreasonably withhold approval of a site that meets our standards for general location and neighborhood, size, traffic patterns, parking size, layout and other physical characteristics, for Studios. If you fail to identify a mutually agreeable site within the aforementioned 120 day period, we may terminate this Agreement. You may not relocate your Studio to a different site in your Protected Territory without our approval.
- a. Once we have approved the proposed site of the Premises for your Franchise, you must obtain lawful possession of the Premises through lease or purchase within 180 days of the date of this Agreement. You agree that we may require you to obtain our advanced written approval of your lease's terms. The lease for the Premises must, if we require it, permit us to take possession of the Premises under certain conditions if this Agreement is terminated.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a prospective franchisee must identify a site acceptable to Degree Wellness for the operation of the franchise within 120 days of the date of the Franchise Agreement.
This means that within this 120-day window, the franchisee needs to actively search for potential locations, submit them to Degree Wellness for approval, and reach a mutual agreement on a site. Failure to identify a mutually agreeable site within this timeframe could lead to the termination of the Franchise Agreement.
Furthermore, once Degree Wellness approves a site, the franchisee has an additional 180 days from the date of the Franchise Agreement to obtain lawful possession of the premises through either a lease or purchase. Degree Wellness may also require advance written approval of the lease terms, and the lease must permit Degree Wellness to take possession of the premises under certain conditions if the Franchise Agreement is terminated. This highlights the importance of securing a suitable location promptly and negotiating lease terms that align with Degree Wellness's requirements.