What must a Degree Wellness franchisee provide to the franchisor after termination of the franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
at all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.
16.5 Other Actions. Upon termination of this Agreement for any reason, and in addition to any other provisions contained in this Agreement, the parties will have the following further rights and obligations:
a. You must promptly execute any documents and take any steps that in the judgment of Degree Wellness are necessary to delete your listings from classified telephone directories and on-line listings, disconnect, or, at Degree Wellness's option, assign to it all telephone numbers that have been used in your Franchised Business, assign to Degree Wellness 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 Degree Wellness. By signing this Agreement, you irrevocably appoint Degree Wellness your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement. If Degree Wellness chooses not to have you assign the telephone numbers to it, you may not assign the telephone number to any competitive business, use automatic forwarding to the telephone number of any competitive business, or otherwise make the telephone number directly or indirectly available to any competitive business.
b. Your Principal Owners and General Manager must immediately comply with the restrictive covenants set forth in this Agreement and any Restrictive Covenants Agreement signed by your General Manager, as applicable.
c. You must give Degree Wellness a final accounting for your Franchised Business, and you must maintain all accounts and records for your Franchised Business for a period of not less than seven years after final payment of any amounts you owe to Degree Wellness, its affiliates, and/or related persons when this Agreement is terminated, but you may not sell, disclose, or otherwise transfer any of the information contained in those accounts and records (other than patient records needed for their continuing care) to, or for use by, any competitive business.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, a franchisee has several obligations. The franchisee must promptly execute documents and take steps necessary to delete their listings from classified telephone directories and online listings. They must also disconnect or assign to Degree Wellness all telephone numbers used in the franchised business, as well as assign any URLs, domain names, and social media names used in connection with the franchise. The goal is to terminate all references indicating affiliation with Degree Wellness. If the franchisee fails to do so within 10 days, Degree Wellness is irrevocably appointed as their attorney-in-fact to take these actions.
Additionally, the franchisee must provide Degree Wellness with a final accounting for their franchised business. They are required to maintain all accounts and records for the business for at least seven years after final payment of any amounts owed to Degree Wellness, its affiliates, or related persons. However, the franchisee is prohibited from selling, disclosing, or transferring any information from these accounts and records to any competitive business, with the exception of patient records needed for their continuing care.
Furthermore, the franchisee must immediately cease using any of Degree Wellness's confidential information and must not use it in any business or for any other purpose. All non-disclosure and related covenants outlined in Section 9 of the agreement survive the termination or expiration of the agreement. The franchisee must immediately return all copies of the Operations Manual and any written confidential information or other confidential materials that Degree Wellness has loaned or provided to them. These obligations ensure the protection of Degree Wellness's brand, confidential information, and customer relationships even after the franchise agreement ends.