Does the Degree Wellness franchise agreement confer ownership of the Copyrighted Works to the franchisee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that your right to use the Copyrighted Works 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.
This Agreement does not confer any interest in the Copyrighted Works to you, other than the right to use them in the operation of the Franchised Business in compliance with this Agreement and the System.
If we authorize you to prepare any adaptation, translation or work derived from the Copyrighted Works, or if you prepare any Copyrighted Works such as advertisements, manuals, posters, forms, or marketing or promotional material (all of which shall be subject to and in compliance with this Agreement), you agree that such adaptation, translation, derivative work, or Copyrighted Work shall be the sole and exclusive property of us and you hereby assign all your right, title, and interest therein to us.
You further agree to execute any documents that we determine are necessary to reflect such ownership and to submit all such adaptations, translations, derivative works and Copyrighted Works to us for prior written approval before use.
- c.
If you make any unauthorized use of the Copyrighted Works 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 Copyrighted Works.
- 7.7 Discontinued Use of Copyrighted Works.
If we believe at any time that it is advisable for you or us to modify, discontinue using, and/or replace any of the Copyrighted Works, you agree to comply with our directions within a reasonable time after receiving notice, including using one or more
additional or substituted copyrighted or copyrightable items. We shall have no obligation to reimburse you for any expenditures made by you to modify or discontinue the use of any Copyrighted Work or to adopt additional or substitute copyrighted or copyrightable items.
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 ownership of the Copyrighted Works to the franchisee. The franchisee's right to use the Copyrighted Works is solely derived from the franchise agreement and is limited to the operation of the franchise in compliance with the agreement. This usage must adhere to all applicable standards, specifications, and operating procedures set by Degree Wellness during the term of the agreement, including timely payments of fees.
The agreement explicitly states that it does not grant any ownership interest in the Copyrighted Works to the franchisee, other than the right to use them for the franchised business as outlined in the agreement. If a franchisee creates any adaptations, translations, or derivative works from the Copyrighted Works, or any new Copyrighted Works like advertisements or marketing materials, these creations become the sole and exclusive property of Degree Wellness. The franchisee must assign all rights, titles, and interests in these works to Degree Wellness and execute any necessary documents to reflect this ownership.
Furthermore, any unauthorized use of the Copyrighted Works during or after the term of the agreement constitutes a breach of the agreement and an infringement of Degree Wellness's rights. Degree Wellness reserves the right to modify, discontinue, or replace any of the Copyrighted Works, and the franchisee must comply with these changes without any obligation on Degree Wellness's part to reimburse any related expenses. This ensures that Degree Wellness maintains control over its intellectual property and can adapt its branding and marketing strategies as needed.