What constitutes a breach of the Degree Wellness franchise agreement regarding the Copyrighted Works?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that your right to use the Copyrighted Works is derived solely from this Agreement and is limited to your operation of the Franchise pursuant to and in compliance with this Agreement and all applicable standards, specifications, and operating procedures we prescribe from time to time during the Term of this Agreement, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to us.
- b.
This Agreement does not confer any interest in the Copyrighted Works to you, other than the right to use them in the operation of the Franchised Business in compliance with this Agreement and the System.
If we authorize you to prepare any adaptation, translation or work derived from the Copyrighted Works, or if you prepare any Copyrighted Works such as advertisements, manuals, posters, forms, or marketing or promotional material (all of which shall be subject to and in compliance with this Agreement), you agree that such adaptation, translation, derivative work, or Copyrighted Work shall be the sole and exclusive property of us and you hereby assign all your right, title, and interest therein to us.
You further agree to execute any documents that we determine are necessary to reflect such ownership and to submit all such adaptations, translations, derivative works and Copyrighted Works to us for prior written approval before use.
- c.
If you make any unauthorized use of the Copyrighted Works either during or after the Term of this Agreement, it will constitute a breach of this Agreement and an infringement of our rights in and to the Copyrighted Works.
- 7.7 Discontinued Use of Copyrighted Works.
If we believe at any time that it is advisable for you or us to modify, discontinue using, and/or replace any of the Copyrighted Works, you agree to comply with our directions within a reasonable time after receiving notice, including using one or more
additional or substituted copyrighted or copyrightable items. We shall have no obligation to reimburse you for any expenditures made by you to modify or discontinue the use of any Copyrighted Work or to adopt additional or substitute copyrighted or copyrightable items.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, unauthorized use of the Copyrighted Works during or after the franchise term constitutes a breach of the franchise agreement. The franchisee's right to use the Copyrighted Works is solely derived from the franchise agreement and is contingent upon compliance with the agreement's terms, standards, specifications, and operating procedures. This includes the timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to Degree Wellness.
The agreement specifies that franchisees do not acquire any ownership interest in the Copyrighted Works beyond the right to use them in compliance with the franchise agreement. If a franchisee creates any adaptation, translation, or derivative work from the Copyrighted Works, such as advertisements or marketing materials, these become the sole property of Degree Wellness, and the franchisee must obtain prior written approval before using them.
Furthermore, if Degree Wellness decides to modify, discontinue, or replace any of the Copyrighted Works, the franchisee must comply with these changes within a reasonable time after receiving notice. The franchisee is responsible for any expenses incurred in making these modifications or discontinuing the use of the Copyrighted Works, and Degree Wellness is not obligated to provide reimbursement. These stipulations ensure Degree Wellness maintains control over its intellectual property and brand consistency across all franchise locations.