In the event of termination of a Degree Wellness franchise, what obligations does the franchisee have regarding telephone numbers used in the Franchised Business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| Agreement, we may terminate the | ||
| Franchise Agreement. | ||
| i. Your obligations on termination/ non-renewal | Section 16 | You must pay all amounts owed to us; refrain from using our Marks, return to us or destroy (as we specify) all customer lists, forms and materials bearing our Marks or relating to the franchise; de-identify the franchise premises; return the Operations Manual; comply with covenants against competition and the non solicitation, non-disparagement, and non-disclosure covenants in Section 9 of the Franchise Agreement; and cease using all confidential information. |
| You irrevocably appoint us your | ||
| attorney-in-fact- | ||
| to de-identify your | ||
| franchise premises and enforce your | ||
| requirement to discontinue use of the | ||
| Marks if you do not perform these | ||
| obligations within 10 days of the | ||
| termination of your Agreement. | ||
| You | ||
| must | ||
| also | ||
| (1) | ||
| execute | ||
| any | ||
| documents | ||
| and | ||
| take | ||
| any | ||
| steps | ||
| necessary to delete your listings from | ||
| classified | ||
| telephone | ||
| directories, | ||
| disconnect, or, at our option, assign to | ||
| us all telephone numbers that have | ||
| been | ||
| used | ||
| in | ||
| your | ||
| Franchised | ||
| Business, assign to | ||
| us any URLs, | ||
| domain names, and social media and | ||
| social networking names that you | ||
| have used in connection with your | ||
| Franchised Business, and terminate | ||
| all other references that indicate you | ||
| are or ever were affiliated with us, and | ||
| (2) give us a final accounting for your | ||
| Studio, and you must maintain all | ||
| accounts and records for your Studio | ||
| for a period of not less than seven | ||
| years after final payment of any | ||
| amounts you owe to us, our affiliates, | ||
| and/or related persons, but you may | ||
| not | ||
| sell, | ||
| disclose, | ||
| or |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, a franchisee has specific obligations regarding telephone numbers used in their Franchised Business. The franchisee must take steps to delete their listings from classified telephone directories. Furthermore, the franchisee is required to disconnect or, at Degree Wellness's option, assign to them all telephone numbers that have been used in the Franchised Business. This ensures that Degree Wellness can maintain control over its branding and customer communication channels after a franchise agreement ends. These obligations are detailed in Section 16 of the Franchise Agreement.
In addition to telephone numbers, the franchisee must also assign to Degree Wellness any URLs, domain names, and social media and social networking names that they have used in connection with their Franchised Business. They must also terminate all other references that indicate they are or ever were affiliated with Degree Wellness. This comprehensive approach ensures a clean break and prevents any potential confusion or misuse of the Degree Wellness brand.
These requirements are typical in franchise agreements to protect the franchisor's brand and customer relationships. By controlling the phone numbers and online presence, Degree Wellness can seamlessly transition customers to other franchise locations or corporate operations. A prospective franchisee should carefully consider these obligations and ensure they understand the implications for their business operations upon termination of the agreement.