Does the Degree Wellness agreement state that the franchisee recognizes having had substantial contact with Degree Wellness's customers?

The 2025 Degree Wellness Franchise Disclosure Document does not explicitly state that the franchisee recognizes having had substantial contact with Degree Wellness's customers. However, the agreement does address the franchisee's conduct regarding customers and client relationships. Specifically, the franchisee agrees not to solicit wellness services or products from any person who was a member or client of the franchise within the two-year period prior to any transfer, termination, or expiration of the agreement. Additionally, the franchisee agrees not to interfere with Degree Wellness's relationship with any of its franchisees, vendors, suppliers, or referral sources.

This non-solicitation clause suggests that Degree Wellness aims to protect its customer base and relationships. By preventing franchisees from soliciting clients of the franchise within a two-year window after the agreement ends, Degree Wellness seeks to maintain customer loyalty and prevent unfair competition. This is a fairly standard practice in franchising, as franchisors typically want to ensure that franchisees do not leverage the established brand and customer relationships to start a competing business immediately after leaving the system.

While the agreement does not contain an explicit acknowledgement of substantial customer contact, the non-solicitation and non-interference clauses imply that Degree Wellness recognizes the value of its customer relationships and takes measures to safeguard them. A prospective franchisee should carefully consider these restrictions and their potential impact on their business operations after the franchise agreement concludes. It would be prudent to discuss the scope and enforcement of these clauses with Degree Wellness during the due diligence process to fully understand the implications.