Does the Degree Wellness agreement state that the terms and conditions of the agreement itself are considered Confidential Information?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
9. CONFIDENTIAL INFORMATION; NON-COMPETITION; OTHER COVENANTS.
9.1 Types of Confidential Information. We possess certain unique confidential and proprietary information and trade secrets consisting of the following categories of information, methods, techniques, products, services and knowledge developed by us, including but not limited to: (a) services and products offered and sold at Degree Wellness franchises; (b) knowledge of sales and profit performance
of any one or more Degree Wellness franchises; (c) knowledge of sources of products sold at Degree Wellness franchises, (d) advertising and promotional programs and image and decor; (e) methods, techniques, formats, specifications, procedures, information, systems, and knowledge of, and experience in, the development, operation, and franchising of Degree Wellness franchises; (f) copyrighted materials, including, without limitation, office forms and procedures, marketing materials, telephone scripts and the content of the Operations Manual; and (g) the methods of training employees. We will disclose much of the above-described information to you in advising you about site selection, providing our Initial Training, providing access to the Operations Manual, and providing guidance and assistance to you under this Agreement. In addition, in the course of the operation of your Franchise, you or your employees may develop ideas, concepts, methods, or techniques of improvement relating to the Franchise that you agree to disclose to us, and that we may then authorize you to use in the operation of your Franchise, and may use or authorize others to use in other Degree Wellness franchises owned or franchised by us or our affiliates. (All of such information disclosed to or developed by you will be referred to in this Agreement as our "Confidential Information".)
9.2 Non-Disclosure Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document, the agreement specifies that certain information is considered confidential but does not explicitly state that the terms and conditions of the agreement itself are confidential. Section 9.1 outlines the types of information considered confidential, including services and products offered, sales and profit performance, sources of products, advertising and promotional programs, methods, techniques, copyrighted materials, and methods of training employees. This confidential information is disclosed to franchisees during site selection, initial training, access to the operations manual, and ongoing guidance.
Section 9.2 details the non-disclosure agreement, stating that the franchisee acknowledges the confidential information belongs to Degree Wellness and agrees to maintain its absolute confidentiality during and after the term of the agreement. The franchisee is prohibited from using the confidential information in any business or capacity other than operating the franchise, disclosing it to any third party, or making unauthorized copies. They must also implement procedures to prevent unauthorized use or disclosure, including non-disclosure agreements with employees.
While the agreement emphasizes the confidentiality of specific types of information and imposes obligations on the franchisee to protect it, it does not explicitly state that the terms and conditions of the franchise agreement itself are confidential. A prospective franchisee should seek clarification from Degree Wellness regarding whether the terms of the agreement are considered confidential and what specific restrictions apply to disclosing those terms.