What payments must a Degree Wellness franchisee make to maintain the right to use the marks?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to use the Marks is derived solely from your Franchise Agreement, and is limited to your conduct of business in compliance with the Franchise Agreement and all applicable specifications, standards, and operating procedures we prescribe during the term of your franchise, including, without limitation, timely payment of the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to us. Any unauthorized use of the Marks by you will constitute an infringement of our rights in and to the Marks. Your use of the Marks and any goodwill established by them will be for our exclusive benefit, and your Franchise Agreement does not confer any goodwill or other interests in the Marks upon you. All provisions of your Franchise Agreement applicable to the Marks will apply to any additional proprietary trade and service marks and commercial symbols authorized for use by, and licensed to you under, your Franchise Agreement. You may not at any time during or after the term of your franchise contest, or assist any other person in contesting, the validity or ownership of any of the Marks.
Source: Item 13 — Trademarks (FDD pages 45–47)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee's right to use Degree Wellness's trademarks is contingent upon several payments. These include the Initial Franchise Fee, Continuing Franchise Fees, Fund contributions, and all other sums due to Degree Wellness. Timely payment of these fees is essential for maintaining the right to use the Degree Wellness marks.
This condition is typical in franchising, as franchisors rely on consistent fee payments to support the brand and provide ongoing services to franchisees. Failure to keep up with these payments can result in a breach of the franchise agreement and subsequent loss of the right to operate under the Degree Wellness brand. This could involve ceasing to use the trademarks and potentially losing the franchise altogether.
Degree Wellness emphasizes that any unauthorized use of the marks constitutes an infringement of their rights. The agreement also specifies that all goodwill associated with the marks benefits Degree Wellness exclusively, meaning franchisees do not acquire any ownership interest in the trademarks themselves. This is standard practice, as the franchisor owns the brand and its associated intellectual property. Prospective franchisees should ensure they understand all payment obligations to avoid jeopardizing their right to operate under the Degree Wellness brand.