Does the Degree Wellness franchisee's obligation to indemnify Degree Wellness continue after the termination of the franchise agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
16.6 Continuing Obligations. All obligations of this Agreement (whether yours or ours) that expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect after and notwithstanding its expiration or termination until they are satisfied in full or by their nature expire. Without limiting the foregoing, you acknowledge and agree that your covenants in Article 9 above survive the termination or expiration of this Agreement to the extent set forth in such Article 9.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the obligations outlined in the franchise agreement, whether belonging to the franchisee or Degree Wellness, that explicitly or by their inherent nature are meant to survive the termination or expiration of the agreement will remain in full effect even after the agreement ends. These obligations will persist until they are completely fulfilled or naturally expire.
Specifically, the franchisee acknowledges and agrees that the covenants detailed in Article 9 of the agreement will continue to be in effect after the termination or expiration of the agreement, as stipulated in Article 9. This means that certain responsibilities and commitments made by the franchisee, particularly those related to confidentiality, non-competition, and protection of Degree Wellness's proprietary information, will extend beyond the term of the franchise agreement.
This continuation of obligations is a common practice in franchising to protect the franchisor's brand, trade secrets, and customer relationships. For a prospective Degree Wellness franchisee, this implies that even after the franchise agreement ends, they must continue to uphold certain responsibilities, especially those pertaining to confidentiality and non-competition, as outlined in Article 9. It is important for potential franchisees to carefully review Article 9 to understand the full scope of these continuing obligations and their potential impact after the franchise agreement concludes.