What acknowledgement do the parties make regarding the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement cannot be based upon gross revenues, then you and we agree to negotiate in good faith an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement, then Degree Wellness reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set forth in Section 16 shall apply.
7. MARKS; COPYRIGHTED WORKS.
7.1 Ownership and Goodwill of Marks
- a. You acknowledge that your right to use the Marks is derived solely from this Agreement, and is limited to your operation of the Franchise pursuant to and in compliance with this Agreement and all applicable standards, specifications, and operating procedures we prescribe from time to time during the Term of this Agreement, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to us.
- b. You understand and acknowledge that our right to regulate the use of the Marks includes, without limitation, any use of the Marks in any form of electronic media, such as Websites or web pages, or as a domain name or electronic media identifier.
- c. If you make any unauthorized use of the Marks either during or after the Term of this Agreement, it will constitute a breach of this Agreement and an infringement of our rights in and to the Marks.
- d. You acknowledge and agree that all your usage of the Marks and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in compliance with this Agreement).
- e. All provisions of this Agreement applicable to the Marks will apply to any additional trademarks, service marks, commercial symbols, designs, artwork, or logos we may authorize and/or license you to use during the Term of this Agreement.
- f. Degree Wellness has invested substantial time, energy, and money in the promotion and protection of its Marks as they exist on the date of this Agreement. However, rights in intangible property such as the Marks are often difficult to establish and defend.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, several acknowledgements are made by both parties within the franchise agreement.
First, the franchisee acknowledges that their right to use Degree Wellness's marks is solely derived from the agreement and is contingent upon operating the franchise in compliance with the agreement's terms, including timely payments of fees. The franchisee also acknowledges Degree Wellness's right to regulate the use of its marks, including in electronic media. Any unauthorized use of the marks constitutes a breach of the agreement and an infringement of Degree Wellness's rights. The franchisee agrees that all goodwill established through their use of the marks will benefit Degree Wellness.
Second, the franchisee acknowledges that Degree Wellness has invested significantly in protecting its marks, but also reserves the right to change its marks if it believes such changes will benefit the system. The franchisee is responsible for conforming to these changes at their own expense.
Finally, the franchisee acknowledges that Degree Wellness would be unable to protect confidential information if franchisees were allowed to hold interests in competitive businesses. Therefore, the franchisee agrees to certain non-compete, non-disparagement, and non-solicitation restrictions during and after the term of the agreement.