What happens if a Degree Wellness franchisee fails to make timely payments?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to use the Marks is derived solely from your Franchise Agreement, and is limited to your conduct of business in compliance with the Franchise Agreement and all applicable specifications, standards, and operating procedures we prescribe during the term of your franchise, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to us. Any unauthorized use of the Marks by you will constitute an infringement of our rights in and to the Marks. Your use of the Marks and any goodwill established by them will be for our exclusive benefit, and your Franchise Agreement does not confer any goodwill or other interests in the Marks upon you. All provisions of your Franchise Agreement applicable to the Marks will apply to any additional proprietary trade and service marks and commercial symbols authorized for use by, and licensed to you under, your Franchise Agreement. You may not at any time during or after the term of your franchise contest, or assist any other person in contesting, the validity or ownership of any of the Marks.
Source: Item 13 — Trademarks (FDD pages 45–47)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee's right to use Degree Wellness's trademarks is contingent upon several factors, including the timely payment of all fees. These fees include the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to Degree Wellness. Failure to make these payments on time constitutes a breach of the Franchise Agreement.
This condition means that if a Degree Wellness franchisee fails to make timely payments, they risk losing the right to operate under the Degree Wellness brand. The FDD states that any unauthorized use of the Marks by you will constitute an infringement of our rights in and to the Marks. This could lead to legal action from Degree Wellness to protect its trademarks.
This requirement is standard practice in franchising, as the franchisor needs to ensure brand consistency and protect its intellectual property. Franchisees should, therefore, ensure they have sufficient capital and a robust financial plan to meet all payment obligations outlined in the Franchise Agreement. Failing to do so can have serious consequences for their franchise operation.