What are the ongoing obligations of a Degree Wellness franchisee related to maintaining the brand standards, considering the trademark rights granted in Item 13 and the obligations listed in Item 9?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Degree Wellness Franchise, LLC, or its affiliates, and their successors or assigns ("Franchisor") franchises the operation of a studio, (each "Degree Wellness Studio" or "Studio") featuring innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health, and offers related products and merchandise under the name Degree Wellness and/or other trademarks, service marks, logos, and other indicia of origin prescribed by Franchisor (collectively, the "Proprietary Marks").
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- Landlord consents to Franchisee's use of such Proprietary Marks and signs, interior and exterior décor, furnishings, fixtures, items, color schemes, plans, specifications, and related components of Degree Wellness System (as defined in the Franchise Agreement and as Franchisor may prescribe for the Studio).
Your Studio franchise must operate at a site we approve and according to our standards, specifications, operating procedures, and rules (the "System Standards"). Unless we approve your employment of an on-site general manager to operate your Degree Wellness franchise, you (if you are an individual) or one of your principal owners, officers, directors, or employees approved by us (if you are a legal entity) must actively participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation.
You agree to secure and maintain in force in your name all required licenses, permits and certificates relating to the operation of the Franchise.
You further agree to refrain from any business or advertising practice that may be harmful to the business of Degree Wellness, the Franchise, and/or the goodwill associated with the Marks and other Degree Wellness franchises.
All advertising you employ must be completely factual, in good taste (in our judgment), and conform to the highest standards of ethical advertising and all legal requirements.
You agree that on termination or expiration of the Franchise you will:
- 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;
You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.
You further agree that all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.
You must promptly execute any documents and take any steps that in the judgment of Degree Wellness are necessary to delete your listings from classified telephone directories and on-line listings, disconnect, or, at Degree Wellness's option, assign to it all telephone numbers that have been used in your Franchised Business, assign to Degree Wellness any URLs, domain names, and social media and social networking names that you have used in connection with your Franchised Business, and terminate all other references that indicate you are or ever were affiliated with Degree Wellness.
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees have several ongoing obligations to maintain brand standards. Franchisees must operate their studio according to Degree Wellness's System Standards, which include the franchisor's standards, specifications, operating procedures, and rules. Unless Degree Wellness approves an on-site general manager, the franchisee (if an individual) or a principal owner, officer, director, or employee approved by Degree Wellness (if a legal entity) must actively participate in the franchise's operation and devote reasonably necessary time for its efficient operation. The franchisee must also secure and maintain all required licenses, permits, and certificates relating to the franchise operation.
Degree Wellness franchisees must use the premises only for operating the studio during the Franchise Agreement term. They must also adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with Degree Wellness, customers, suppliers, and public officials. Franchisees must refrain from any business or advertising practice that may be harmful to Degree Wellness's business, the franchise, and/or the goodwill associated with the Proprietary Marks and other Degree Wellness franchises. All advertising must be completely factual, in good taste, and conform to the highest standards of ethical advertising and all legal requirements.
Upon termination or expiration of the franchise, franchisees must cease using any Confidential Information and agree not to use it in any business or for any other purpose. They must return all copies of the Operations Manual and any written Confidential Information or other confidential materials. Franchisees must also take steps to remove any indication of affiliation with Degree Wellness, including deleting listings from directories and assigning telephone numbers and URLs to Degree Wellness. These obligations ensure the consistent representation of the Degree Wellness brand and protect its intellectual property.