What are the obligations of a Degree Wellness franchisee regarding the use of trademarks (Item 9), considering the trademark rights granted by the franchisor (Item 13)?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you the right to operate your Degree Wellness franchise using our principal Marks: the name "Degree Wellness" the stylized "d" and " ENERGY FOR LIFE", in your Degree Wellness franchise.
We have the following registered marks with the PTO:
- 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Studio Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service marks. You agree that after the termination or expiration of the Franchise you will:
- a. not directly or indirectly at any time identify any business with which you are associated as a current or former Degree Wellness franchise or franchisee;
- b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Works in any manner or for any purpose, or use for any purpose any trademark or other commercial symbol that suggests or indicates an association with us;
- c. return to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or any Copyrightable Works or otherwise relating to a Degree Wellness franchise;
- d. remove all Marks affixed to uniforms or, at our direction, cease to use those uniforms; and
e. take any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark.
You irrevocably appoint Degree Wellness your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
- 16.3 De-Identification.
If you retain possession of the Premises, you agree to completely remove or modify, at your sole expense, any part of the interior and exterior decor that we deem necessary to disassociate the Premises with the image of a Degree Wellness franchise, including any signage, posters, furniture, equipment, products, or display units bearing the Marks.
If you do not take the actions we request within 10 days after notice from us, we have the right to enter the Premises and make the required changes at your expense, and you agree to reimburse us for those expenses on demand.
You irrevocably appoint Degree Wellness your attorney-in-fact to take the actions described in this paragraph if you do not do so yourself within 10 days after termination of this Agreement.
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are granted the right to operate their franchise using the principal marks, specifically the name "Degree Wellness," the stylized "d" and "ENERGY FOR LIFE". This means that as a franchisee, you are authorized to use these trademarks in the operation of your Degree Wellness studio. However, this right is not unlimited and comes with obligations, particularly upon termination or expiration of the franchise agreement.
Upon termination or expiration, a franchisee must cease all use of the Degree Wellness marks and copyrightable works. This includes refraining from identifying any business as a current or former Degree Wellness franchise, and discontinuing the use of any mark or commercial symbol that suggests an association with Degree Wellness. Franchisees are also required to return or destroy all customer lists, forms, and materials containing any Degree Wellness mark. Additionally, franchisees must remove all Degree Wellness marks from uniforms or cease using the uniforms altogether. They must also take action to cancel any assumed name registrations related to the use of any Degree Wellness mark.
Furthermore, if a franchisee retains possession of the premises after termination, they are obligated to remove or modify any interior and exterior decor that could associate the premises with Degree Wellness, including signage, posters, furniture, and equipment bearing the marks. If the franchisee fails to take these actions within 10 days of notice from Degree Wellness, the franchisor has the right to enter the premises and make the necessary changes at the franchisee's expense. Degree Wellness is even irrevocably appointed as the franchisee's attorney-in-fact to ensure these actions are completed, highlighting the importance of adhering to these post-termination obligations regarding trademark use.