Does the Degree Wellness franchise agreement confer any goodwill or other interests in the Degree Wellness marks to the franchisee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ss revenues, then you and we agree to negotiate in good faith an alternative fee arrangement. If you and we are unable to reach an agreement on an alternative fee arrangement, then Degree Wellness reserves the right to terminate this Agreement upon notice to you, in which case all of the post-termination obligations set forth in Section 16 shall apply.
7. MARKS; COPYRIGHTED WORKS.
7.1 Ownership and Goodwill of Marks
- a. You acknowledge that your right to use the Marks 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. You understand and acknowledge that our right to regulate the use of the Marks includes, without limitation, any use of the Marks in any form of electronic media, such as Websites or web pages, or as a domain name or electronic media identifier.
- c. If you make any unauthorized use of the Marks 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 Marks.
- d. You acknowledge and agree that all your usage of the Marks and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in compliance with this Agreement).
- e.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement does not confer any goodwill or other interests in the marks to the franchisee. The agreement specifies that the franchisee's right to use the Degree Wellness marks is solely derived from the franchise agreement and is limited to the operation of the franchise in compliance with the agreement's terms and standards. This includes the timely payment of fees and adherence to operational procedures.
The FDD emphasizes that any goodwill established through the franchisee's use of the Degree Wellness marks will exclusively benefit Degree Wellness and its affiliates. The franchisee acknowledges this and agrees that the franchise agreement does not grant them any ownership or other interests in the marks beyond the right to operate the franchise as outlined in the agreement. This is a standard practice in franchising, where the franchisor retains ownership and control over its intellectual property.
Degree Wellness retains the right to modify its marks and specifications, and franchisees are obligated to conform to these changes at their own expense. This ensures brand consistency and allows Degree Wellness to adapt its branding to market changes or address legal challenges. The franchisee is not entitled to reimbursement for any losses incurred as a result of these changes. This provision highlights the franchisor's control over the brand and the franchisee's responsibility to maintain brand standards.