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

According to Degree Wellness's 2025 Franchise Disclosure Document, the goodwill established by a franchisee's use of the Degree Wellness marks inures exclusively to the benefit of Degree Wellness and its affiliates. The agreement explicitly states that it 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 franchisees contribute to building brand recognition and positive reputation through their operations, the ultimate value of that goodwill belongs to Degree Wellness.

This arrangement is typical in franchising, as the franchisor owns the brand and its associated intellectual property. Degree Wellness retains control over the brand's image and standards, ensuring consistency across all franchise locations. This allows Degree Wellness to maintain and enhance the overall brand value, which benefits the entire franchise system.

For a prospective Degree Wellness franchisee, this means that while their efforts will contribute to the brand's success, they will not own any portion of the brand equity they help create. Upon termination or expiration of the franchise agreement, the franchisee must discontinue all use of the Degree Wellness marks and associated intellectual property. This underscores the importance of understanding the terms of the franchise agreement and the respective rights and obligations of both the franchisor and the franchisee.