Does the Degree Wellness franchise agreement grant franchisees any ownership interest in the Confidential Information?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2 Non-Disclosure Agreement.
- a. You agree that your relationship with us does not vest in you any interest in the Confidential Information, other than the right to use it solely in the development and operation of the Franchise during the Term of this Agreement, and that the use or duplication of the Confidential Information in any other business or for any other purpose would constitute an unfair method of competition or otherwise result in irreparable damage to us.
- b. You acknowledge and agree that the Confidential Information belongs to us, may contain trade secrets belonging to us, and is disclosed to you or authorized for your use solely on the condition that you agree, and you therefore do agree, that you (1) will not use, directly or indirectly, the Confidential Information in any business or capacity or for any purpose other than as needed in the development and operation of the Franchise during the Term of this Agreement; (2) will maintain the absolute confidentiality of the Confidential Information during and after the Term of this Agreement and not directly or indirectly publish or otherwise disclose it to any third party; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media that may be copied or duplicated; and (4) will adopt and implement all reasonable procedures, including any that we may prescribe from time to time, to prevent unauthorized use or disclosure of the Confidential Information, including without limitation restrictions on disclosure to or by your employees, and the use of non-disclosure, non-solicitation, non-disparagement and non-competition agreements we may prescribe or approve for your shareholders, partners, members, officers, directors, employees, independent contractors, or agents who may have access to the Confidential Information. You acknowledge and agree that we are
under no duty or obligation to you to enforce any such Agreements for your or our benefit. Your duties and obligations with respect to Confidential Information shall survive the Transfer, termination or expiration of this Agreement.
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 explicitly states that the franchisee's relationship with Degree Wellness does not grant them any ownership interest in the Confidential Information. The franchisee is only granted the right to use the Confidential Information during the term of the agreement for the development and operation of their franchise.
Degree Wellness emphasizes that the Confidential Information belongs to them and may contain trade secrets. Franchisees are permitted to use this information solely for operating their franchise during the agreement's term. Any unauthorized use or duplication of the Confidential Information is considered an unfair method of competition and would cause irreparable damage to Degree Wellness.
To protect this information, franchisees must maintain absolute confidentiality both during and after the agreement, and they cannot disclose it to any third party. They are also prohibited from making unauthorized copies and must implement reasonable procedures to prevent unauthorized use or disclosure, including using non-disclosure agreements with their own employees. These obligations regarding Confidential Information survive any transfer, termination, or expiration of the franchise agreement.