Does the Degree Wellness agreement define what constitutes 'third parties' for the non-disparagement clause?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that during the Term of this Agreement, and thereafter following any Transfer, termination or expiration of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, will directly or indirectly make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) us, the Franchise, any of our franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of our or their respective owners, officers, directors, employees, consultants or agents.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the non-disparagement clause specifies who is restricted from making negative statements. It states that neither the franchisee, any Principal Owner, nor any member of their immediate family can directly or indirectly make negative or critical statements to any third parties. These statements can be verbal or in any other form or media.
The clause covers statements about Degree Wellness itself, the franchise, any of its franchisees, or their respective products, services, businesses, or business practices. It also includes the actions, operations, or character of any of their respective owners, officers, directors, employees, consultants, or agents.
While the clause identifies who is restricted from making disparaging remarks (the franchisee, principal owners, and their families), it does not specifically define who constitutes 'third parties'. This means the restriction applies broadly to anyone outside of the defined group linked to the franchisee. This could include customers, vendors, competitors, or the general public.