Is a Degree Wellness Licensed Provider allowed to make negative statements about Degree Wellness after the agreement term?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Non-Disparagement. Licensed Provider agrees that during the Agreement Term and thereafter, Licensed Provider will not, directly or indirectly, make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) Management Company, the Studio Management Business, Degree Wellness or any of its franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of Management Company's or Degree Wellness's respective owners, officers, directors, employees, consultants or agents.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider is restricted from making negative statements about Degree Wellness both during and after the agreement term. Specifically, the non-disparagement clause in the agreement extends beyond the termination or expiration of the agreement.
This means that even after a Licensed Provider's agreement with Degree Wellness ends, they are still contractually obligated not to make any negative or critical statements about Degree Wellness, its franchisees, or their respective businesses, services, or practices. This restriction applies to statements made to any third party, whether verbally or through any other form of media.
This clause protects Degree Wellness's reputation and goodwill, ensuring that former Licensed Providers cannot damage the brand through negative comments. For a prospective franchisee, this means understanding that their speech regarding the franchise is restricted even after they leave the system. Violation of this clause could potentially lead to legal consequences, so it's crucial to carefully consider this long-term obligation before entering into an agreement with Degree Wellness.