What obligation does a Degree Wellness franchisee have regarding a General Manager's qualifications?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not hire any General Manager or successor General Manager without first receiving our written approval of such General Manager's qualifications. Each General Manager and successor General Manager must attend and complete our Initial Training (as defined herein) prior to commencing the role of General Manager. No General Manager may have any interest in or business relationship with any business competitor of your franchise. Each General Manager must sign a written agreement, in a form approved by us, to maintain confidential our Confidential Information described in Paragraph 9.1, to abide by non-solicitation and non-disparagement covenants, and to abide by the covenants not to compete described in Paragraph 9.3. We can provide a form for this required written agreement, however, our form is subject to review by your attorney for compliance with all local laws and rules. You must forward to us a copy of each such signed agreement. If we determine, in our sole discretion, during or following completion of the Initial Training program, that your General Manager (if any) is not qualified to act as General Manager of the Franchise, then we have the right to require you to choose (and obtain our approval of) a new individual for that position.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee must obtain written approval from Degree Wellness before hiring a General Manager or successor General Manager. The General Manager must have the authority to implement the Degree Wellness system at the franchise and must devote their full time and best efforts to the franchise's operations.
The General Manager must attend and complete Degree Wellness's Initial Training program before starting their role. If Degree Wellness determines that the General Manager is not qualified during or after the training, Degree Wellness has the right to require the franchisee to choose a new individual for the position, subject to Degree Wellness's approval.
Additionally, the General Manager cannot have any interest in or business relationship with any competitor of the franchise. The General Manager must also sign a written agreement, in a form approved by Degree Wellness, to maintain the confidentiality of Degree Wellness's confidential information, abide by non-solicitation and non-disparagement covenants, and adhere to covenants not to compete. The franchisee must forward a copy of this signed agreement to Degree Wellness.
These requirements ensure that the General Manager is properly trained, qualified, and committed to operating the Degree Wellness franchise according to the franchisor's standards and to protect Degree Wellness's interests.