factual

What is the Degree Wellness franchisee's obligation regarding the confidentiality of the Confidential Information after the termination of the franchise agreement?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 16.4 Confidential Information.

You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.

You further agree that 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.

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 franchisee has ongoing obligations regarding confidential information even after the franchise agreement terminates or expires. Specifically, the franchisee must immediately cease using any confidential information and is prohibited from using it in any business or for any other purpose. The franchisee must also adhere to the non-disclosure agreements outlined in Section 9 of the franchise agreement, which survive the termination or expiration of the agreement.

Furthermore, the franchisee is required to return all copies of the Operations Manual and any written confidential information or other confidential materials that Degree Wellness provided. This ensures that the franchisee no longer possesses any materials that could compromise Degree Wellness's confidential information.

In addition to these specific requirements, the franchisee's general duties and obligations regarding confidential information continue even after the agreement ends. This includes maintaining the absolute confidentiality of the information and not disclosing it to any third party, as well as implementing procedures to prevent unauthorized use or disclosure. These measures are designed to protect Degree Wellness's trade secrets and other proprietary information, ensuring that the franchisee does not use this information to compete against Degree Wellness after the franchise relationship ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.