Why does the Degree Wellness agreement emphasize the need for confidentiality?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement places a strong emphasis on confidentiality to protect its unique and proprietary information. Degree Wellness considers unauthorized use or disclosure of confidential information as a significant threat that could hinder the free exchange of ideas and information among its franchises. This is why Degree Wellness restricts franchise owners from holding interests in competitive businesses.

The agreement defines 'Confidential Information' broadly, including services and products offered, sales and profit performance data, sources of products, advertising and promotional programs, methods, techniques, formats, specifications, procedures, systems, copyrighted materials, and employee training methods. Degree Wellness discloses this information during site selection, initial training, access to the Operations Manual, and ongoing support. Franchisees are also expected to disclose any improvements they develop related to the franchise, which then become part of Degree Wellness's confidential information.

To protect this information, franchisees must agree not to use the Confidential Information in any business other than their Degree Wellness franchise, maintain absolute confidentiality during and after the term of the agreement, avoid unauthorized copies, and implement procedures to prevent unauthorized use or disclosure. These obligations extend to the franchisee's employees, shareholders, partners, members, officers, directors, independent contractors, or agents. The franchisee's confidentiality obligations survive the transfer, termination, or expiration of the franchise agreement, highlighting the enduring importance Degree Wellness places on protecting its proprietary information.