Can a Degree Wellness franchisee use the Degree Wellness marks to promote any business other than the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement cannot be based upon gross 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. You understand and acknowledge that our right to regulate the use of the Marks includes, without limitation, any use of the Marks in any form of electronic media, such as Websites or web pages, or as a domain name or electronic media identifier.
- c. If you make any unauthorized use of the Marks 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 Marks.
- d. You acknowledge and agree that all your usage of the Marks and any goodwill established by your use will inure exclusively to our benefit and the benefit of our affiliates, and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate the Franchise in compliance with this Agreement).
- e. All provisions of this Agreement applicable to the Marks will apply to any additional trademarks, service marks, commercial symbols, designs, artwork, or logos we may authorize and/or license you to use during the Term of this Agreement.
- f. Degree Wellness has invested substantial time, energy, and money in the promotion and protection of its Marks as they exist on the date of this Agreement. However, rights in intangible property such as the Marks are often difficult to establish and defend. In addition, other circumstances, such as changes in the cultural and economic environment within which the System operates, changes in marketing or other strategies, or t
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee's right to use the Degree Wellness marks is strictly limited to the operation of their franchise. The agreement specifies that the franchisee's right to use the marks comes solely from the franchise agreement. This use must comply with all standards, specifications, and operating procedures that Degree Wellness prescribes.
The agreement explicitly prohibits any unauthorized use of the marks, whether during or after the term of the agreement. Any such unauthorized use constitutes a breach of the agreement and an infringement of Degree Wellness's rights. All goodwill established through the franchisee's use of the marks inures exclusively to the benefit of Degree Wellness.
Upon termination or expiration of the franchise agreement, the franchisee must cease all use of the Degree Wellness marks and cannot identify any other business as a current or former Degree Wellness franchise. This includes removing all marks from uniforms and taking actions to cancel any registrations related to the use of the marks. Degree Wellness even has the power of attorney to enforce these actions if the franchisee fails to comply within 10 days of termination.
In practical terms, this means a Degree Wellness franchisee cannot use the brand's name, logos, or other identifying marks to promote any business other than their franchised Degree Wellness studio. This restriction is common in franchising to protect the brand's integrity and reputation, ensuring consistent brand representation across all franchise locations.