Does the Degree Wellness franchise agreement confer any goodwill or other interests in the 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.
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, standards, specifications, and operating procedures. This includes the timely payment of fees and other sums due to Degree Wellness.
The Degree Wellness agreement explicitly states that all usage of the Marks and any goodwill established by the franchisee's use will exclusively benefit Degree Wellness and its affiliates. The agreement clarifies that it does not grant the franchisee any goodwill or other interests in the Marks beyond the right to operate the franchise as per the agreement.
This means that while franchisees can use the Degree Wellness Marks to operate their studios, they do not gain any ownership or rights to the Marks themselves or the goodwill associated with them. Upon termination or expiration of the franchise agreement, the franchisee must cease all use of the Marks and take actions to de-identify their business from the Degree Wellness brand. This is a common practice in franchising, as the franchisor retains ownership and control over its intellectual property to ensure brand consistency and protect its value.