If Degree Wellness directs me to modify or discontinue the use of any Mark, who bears the expense?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4 Discontinuance of Use of Marks.
If it becomes advisable at any time in our sole judgment for the Franchise to modify or discontinue the use of any Mark, or use one or more additional or substitute trade or service marks, including the Marks used as the name of the Franchise, then you agree, at your sole expense, to comply with our directions to modify or otherwise discontinue the use of the Mark, or use one or more additional or substitute trade or service marks, within a reasonable time after our notice to you.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if Degree Wellness determines that it is advisable to modify or discontinue the use of any Mark, franchisees are responsible for complying with these changes at their own expense. This includes any modifications or discontinuance of existing marks, as well as the adoption of additional or substitute trade or service marks. Degree Wellness will provide notice to franchisees regarding these changes, and franchisees are expected to implement them within a reasonable timeframe.
This requirement means that as a prospective Degree Wellness franchisee, you must be prepared to bear the costs associated with updating signage, marketing materials, and other branded items if Degree Wellness decides to change its Marks. These costs could potentially be significant, depending on the extent of the changes and the amount of branded material that needs to be updated. The FDD does not specify the exact procedure or timeline Degree Wellness will follow when implementing such changes, only that it will provide a 'reasonable time' for compliance.
While franchisees are responsible for the costs associated with these changes, Degree Wellness does offer some protection regarding trademark infringement claims. Specifically, Degree Wellness will indemnify and reimburse franchisees for damages they are held liable for in trademark infringement proceedings, provided that the franchisee has used the Mark in compliance with the franchise agreement, has promptly notified Degree Wellness of the claim, allowed Degree Wellness to defend the claim, and cooperated with the defense. This indemnification provides some financial security to the franchisee, but does not cover the costs of complying with modifications or discontinuations of Marks directed by Degree Wellness.
It is important for prospective franchisees to consider these potential costs and risks when evaluating the Degree Wellness franchise opportunity. Prudent due diligence would include inquiring with existing franchisees about the frequency and cost of brand updates, as well as seeking clarification from Degree Wellness regarding the typical scope and cost of such changes. Understanding these potential expenses will help a prospective franchisee to better assess the overall financial viability of the franchise.