What is the effect of impairing the goodwill associated with the Degree Wellness marks?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or Degree Wellness franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee's actions or omissions impair the goodwill associated with the Degree Wellness marks or Degree Wellness franchises, Degree Wellness is entitled to seek injunctive relief and orders of specific performance. This means Degree Wellness can pursue court orders to stop the franchisee from continuing the harmful behavior.
Degree Wellness does not have to post a bond to obtain these injunctions or orders. If Degree Wellness obtains such an injunction or order, the franchisee is responsible for paying Degree Wellness's costs, including reasonable attorneys' and expert witness fees, investigation costs, court costs, litigation expenses, and travel and living expenses. The franchisee must also pay any damages Degree Wellness incurs as a result of the breach.
Furthermore, the franchisee agrees to waive any claims for damages even if a later determination finds that the injunction or specific performance order was issued improperly. This clause emphasizes the importance Degree Wellness places on protecting its brand and the potential financial consequences for franchisees who harm the brand's reputation or goodwill.