What must a Degree Wellness franchisee do with the signed agreement from the General Manager?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- d.
General Managers to Sign Agreement.
You further agree that you will cause each General Manager to enter into and deliver to us a Restrictive Covenant Agreement in such form as we may approve, either concurrently with the execution of this Agreement or at such later date when the affiliation of such person with you is established.
You acknowledge and agree that we are under no duty or obligation to you to enforce any such Agreements for your or our benefit.
The duties and obligations imposed in the
Restrictive Covenant Agreement shall survive the Transfer, expiration or earlier termination 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, a franchisee must ensure that each General Manager enters into and delivers a Restrictive Covenant Agreement to Degree Wellness. This agreement must be in a form approved by Degree Wellness, either when the Franchise Agreement is executed or when the General Manager becomes affiliated with the franchisee.
This requirement ensures that the General Manager is bound by certain restrictions and obligations, likely related to protecting Degree Wellness's interests, such as confidentiality and non-competition. Degree Wellness states that it has no duty to enforce these agreements for the franchisee's or its own benefit, meaning the franchisee may need to take independent action to enforce the agreement if necessary.
The obligations within the Restrictive Covenant Agreement will remain in effect even if the Franchise Agreement is transferred, expires, or is terminated early. This highlights the importance of these agreements in safeguarding Degree Wellness's interests over the long term, regardless of changes in franchise ownership or status.