What action must a Degree Wellness franchisee take if they notice an infringement of the Degree Wellness marks?

According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee must notify Degree Wellness in writing within 5 days of the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit, that may adversely affect the franchisee's and/or the Franchise's operation, financial condition, or reputation. This includes any and all claims of malpractice brought against the franchisee or any professional affiliated with them, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or the franchisee's receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.

This notification requirement ensures that Degree Wellness is promptly informed of any legal or regulatory issues that could impact the brand or the franchisee's business. By requiring written notice within 5 days, Degree Wellness aims to stay ahead of potential problems and take appropriate action to protect its interests and the interests of its franchisees. This proactive approach is common in franchising, as franchisors need to maintain brand consistency and address legal challenges efficiently.

The franchisee's responsibility to report these matters extends to a broad range of issues, including not only formal legal actions but also any notices of violations related to health or safety regulations. This comprehensive reporting obligation highlights the importance Degree Wellness places on compliance and risk management. Failure to report such issues within the specified timeframe could potentially lead to breaches of the franchise agreement and subsequent penalties.

For a prospective Degree Wellness franchisee, this requirement underscores the need for vigilance and prompt communication. It is crucial to establish internal procedures for identifying and reporting any events that could trigger this notification obligation. Maintaining open communication with Degree Wellness regarding legal and regulatory matters is essential for a successful and compliant franchise operation.