What actions are considered 'dishonest' that could lead to termination of the Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, engaging in dishonest conduct can lead to the termination of the franchise agreement. Specifically, if a franchisee or any of their Principal Owners are convicted of or plead no contest to any crime or offense that is likely to adversely affect the reputation of Degree Wellness, the Franchise, and/or the goodwill associated with the Marks, or otherwise engage in any dishonest, unethical, or other conduct that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of your Franchised Business, the Marks or the System, Degree Wellness has grounds for termination.

This means that Degree Wellness franchisees must ensure they and their Principal Owners maintain a high standard of ethical behavior and avoid any actions that could damage the brand's reputation. This extends beyond just criminal convictions to include any behavior deemed dishonest or unethical that reflects poorly on the franchise.

For a prospective franchisee, this highlights the importance of conducting business with integrity and ensuring all employees and Principal Owners understand the ethical standards expected by Degree Wellness. Failure to do so could result in the termination of the franchise agreement and loss of the business. This clause protects Degree Wellness's brand image and reputation, which is a common practice in franchising, where the success of individual franchisees is closely tied to the overall brand.