What does the Degree Wellness agreement prohibit regarding negative or critical statements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- b.
Non-Disparagement.
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, franchisees are restricted from making negative or critical statements about the franchise. Specifically, during the term of the agreement and even after its transfer, termination, or expiration, neither the franchisee, any Principal Owner, nor any member of their immediate family can directly or indirectly make any negative or critical statements to third parties.
This prohibition extends to statements made verbally or in any other form or media. The restriction applies to statements about Degree Wellness itself, the franchise, any of its franchisees, or their respective products, services, businesses, or business practices. It also includes statements about the actions, operations, or character of any of Degree Wellness's or its franchisees' owners, officers, directors, employees, consultants, or agents.
This non-disparagement clause is a fairly standard provision in franchise agreements, designed to protect the brand's reputation. However, it is important for prospective Degree Wellness franchisees to understand the breadth of this restriction. It limits their ability to publicly voice concerns or criticisms about the franchise system, even after they have left the system. Violation of this clause could potentially lead to legal action by Degree Wellness.