Who benefits from the goodwill established by a franchisee's use of the Degree Wellness marks?

According to Degree Wellness's 2025 Franchise Disclosure Document, the goodwill that is established through a franchisee's use of Degree Wellness's marks benefits Degree Wellness and its affiliates. The agreement specifies that the franchisee's usage of the marks and any resulting goodwill will exclusively benefit Degree Wellness and its affiliates. The agreement does not confer any goodwill or other interests in the marks to the franchisee, other than the right to operate the franchise in compliance with the agreement.

This means that while a Degree Wellness franchisee may contribute to building brand recognition and positive reputation through their operations, the value generated by these efforts accrues solely to the benefit of Degree Wellness. The franchisee does not gain any ownership or equity in the brand's trademarks or associated goodwill. This is a common practice in franchising, where the franchisor retains control over the brand and its image.

For a prospective Degree Wellness franchisee, this highlights the importance of understanding that they are investing in a system where the brand equity remains with the franchisor. While a successful franchise location can generate revenue for the franchisee, the long-term value of the brand itself is retained by Degree Wellness. This is a standard element of most franchise agreements, designed to protect the consistency and value of the brand across all franchise locations.