What agreements must a general manager of a Degree Wellness franchise sign?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
rticipate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager, then the general manager will supervise the dayto-day operation of your franchise. Each general manager and successor general manager must attend and complete our initial training program for your franchise prior to commencing the role of General Manager (see Item 11). We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the healthcare profession may require a licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed professional. You are responsible for complying with these state laws and regulations.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 48–49)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee employs a general manager to operate the Degree Wellness franchise, that general manager must sign certain agreements. Specifically, the general manager must sign a written agreement to maintain the confidentiality of proprietary information, as described in Item 14 of the FDD.
Additionally, the general manager must agree to abide by the covenants not to compete, as detailed in Items 17(q) and 17(r) of the FDD. These covenants likely restrict the general manager from engaging in competitive business activities during and after their employment with the Degree Wellness franchise.
Furthermore, the general manager is required to adhere to non-disparagement and non-solicitation covenants, which are outlined in Items 17(x) and 17(y) of the FDD. These covenants likely prevent the general manager from making negative statements about the Degree Wellness brand and from soliciting employees or customers of the franchise. The franchisee must also ensure that each General Manager enters into and delivers to Degree Wellness a Restrictive Covenant Agreement in such form as Degree Wellness may approve.
These requirements ensure that the general manager is legally bound to protect Degree Wellness's interests, including its confidential information, competitive position, and reputation. It is important for prospective franchisees to understand these obligations and ensure that any general manager they hire is willing to comply with these agreements.