Besides the franchisee, who else is subject to the non-competition, non-disparagement, and non-solicitation agreements for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, during the Term of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, shall directly or indirectly perform services for, or have any direct or indirect interest as an owner, investor, partner, director, officer, employee, manager, consultant, representative, or agent in, any business that offers products or services the same as or similar to those offered or sold at Degree Wellness Studio franchises; provided, however, that the ownership of one percent (1%) or less of a publicly traded company will not be deemed to be prohibited by this Paragraph.
- b.
Non-Disparagement.
You agree that during the Term of this Agreement, and thereafter following any Transfer, termination or expiration of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, will directly or indirectly make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) us, the Franchise, any of our franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of our or their respective owners, officers, directors, employees, consultants or agents.
- c.
Non-Solicitation.
You agree that during the Term of this Agreement, and thereafter for a period of two (2) years following any Transfer, termination or expiration of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, will directly or indirectly (a) solicit for wellness or related services or products with any person who was a member or client of the Franchise within the two year period prior to such Transfer, termination or expiration; or (b) interfere with our relationship with any of our franchisees, vendors, suppliers or referral sources.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, in addition to the franchisee, several other parties are subject to the non-competition, non-disparagement, and non-solicitation agreements. Specifically, these covenants apply to any Principal Owner of the franchise and any member of the immediate family of both the franchisee and any Principal Owner.
These restrictions mean that not only the franchisee themselves, but also those closely associated with them, are barred from engaging in activities that could be seen as competitive, disparaging, or soliciting customers or employees of the Degree Wellness franchise. The definition of "immediate family" is not provided in this excerpt.
This broad scope is designed to protect Degree Wellness's interests by preventing those with close ties to the franchise from undermining its business or reputation. A prospective franchisee should carefully consider the implications of these restrictions on their family members and business partners before entering into a franchise agreement with Degree Wellness.