Can Degree Wellness operate other healthcare-related companies or franchises under different trademarks within my Protected Territory?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in this Paragraph 2.3, we retain all rights with respect to Studio franchises, the Marks and the System, including (by way of example only and not as a limitation): (a) the right to operate or grant others the right to operate Studio franchises physically located outside the Protected Territory on terms and conditions we deem appropriate; (b) the right to operate or offer other healthcare-related companies or franchises or enter into other lines of business offering similar or dissimilar products or services under trademarks or service marks other than the Marks, both within or outside of the Protected Territory and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); (c) the right to sell or distribute, at retail or wholesale, directly or indirectly, or via the internet or any other means, or license others to sell or distribute, via any means (including the internet and other channels of distribution) any products that bear any proprietary marks, including the Marks, whether within or outside your Protected
Territory; (d) the right to own, acquire, establish, and/or operate, and license others to establish and operate, businesses different from a Franchised Business but operated under the Marks within or outside your Protected Territory, and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); and (e) the right to be acquired (whether though acquisition of assets, or equity interests or otherwise, regardless of the form of transaction) by a business or entity providing products and services similar to those provided by Franchised Businesses even if that business or entity operates, franchises, or licenses competitive businesses in your Protected Territory.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness retains the right to operate or offer other healthcare-related companies or franchises under different trademarks or service marks, both within or outside of a franchisee's protected territory. They can also enter into other lines of business offering similar or dissimilar products or services under different trademarks.
This means that even within your protected territory, Degree Wellness could potentially operate or franchise other businesses that offer similar or even the same services as your Degree Wellness studio, as long as they operate under different trademarks or service marks. This could create competition for your franchise within your own protected territory.
Degree Wellness also has the right to use other channels of distribution, such as the internet, email, social media, or telemarketing, in connection with these other systems or locations. Additionally, Degree Wellness can sell or distribute products bearing any proprietary marks, including the Degree Wellness marks, through any means, including the internet, within or outside your protected territory.
This reservation of rights gives Degree Wellness considerable flexibility to expand its brand and offerings, but it also introduces a potential risk for franchisees, who may face competition from Degree Wellness itself or related businesses within their protected territory. Prospective franchisees should carefully consider this aspect and evaluate the potential impact on their business before investing in a Degree Wellness franchise.