When must the General Manager of a Degree Wellness franchise sign the Restrictive Covenant Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if you employ a General Manager for your franchise, you must ensure they enter into and deliver a Restrictive Covenant Agreement. This agreement must be in a form approved by Degree Wellness. The agreement should be signed either concurrently with the execution of the Franchise Agreement or at a later date when the General Manager's affiliation with your franchise is established.
This requirement ensures that Degree Wellness can protect its business interests by preventing General Managers from engaging in activities that could harm the franchise, such as working for a competitor or disclosing confidential information. The Restrictive Covenant Agreement's duties and obligations remain in effect even if the franchise is transferred, expires, or terminates early.
Degree Wellness is not obligated to enforce these agreements for your benefit. It is also important to note that the franchisor believes any breach of these covenants would cause immediate and irreparable harm and that the restraints are fair, reasonable, and necessary to protect their business interests, without imposing undue hardship on the franchisee.