What constitutes 'dishonest, unethical or other conduct' that could lead to termination of the Degree Wellness agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Licensed Provider or, if Licensed Provider is an entity, any of its owners, is convicted of or pleads no contest to a felony or are convicted or plead no contest to any crime or offense that is likely to adversely affect the reputation of Management Company, the Studio Management Business, Degree Wellness, and/or the goodwill associated with the System or the Marks, or otherwise engages in any dishonest, unethical or other conduct that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of Management Company, the Studio Management Business, the System or the Marks;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider can have their agreement terminated if they engage in 'dishonest, unethical or other conduct'. Specifically, this refers to conduct that is reasonably likely to reflect materially and unfavorably on the goodwill or reputation of Management Company, the Studio Management Business, the Degree Wellness system, or the Degree Wellness marks.
In practical terms, this means that a Degree Wellness franchisee must avoid any actions that could damage the brand's image or reputation. This could include a wide range of behaviors, such as making false or misleading statements about the services offered, engaging in deceptive marketing practices, or any other actions that could be perceived as unethical or dishonest.
It is important to note that the determination of what constitutes 'dishonest, unethical or other conduct' is subjective and will be made by Management Company. Therefore, it is crucial for franchisees to maintain the highest ethical standards in all aspects of their business operations to avoid any potential issues. Franchisees should seek clarification from Management Company if they are unsure whether a particular action could be considered a breach of this provision.