What are the potential consequences if Degree Wellness's right to use a trademark is challenged?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not have a federal registration for all of our principal trademarks. Therefore, some of our trademarks do not have many legal benefits and rights as a federally registered trademark. If our right to use the trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses.
expense and we need not reimburse you for any loss of revenue due to any modified or discontinued Mark.
We will indemnify you against, and reimburse you for, (1) all damages for which you are held liable in any judicial or administrative proceeding arising out of your use of any Mark in compliance with your Franchise Agreement; and (2) all costs you reasonably incur in defending against any claim brought against you or in any proceeding in which you are named as a party, provided that you have timely notified us of the claim or proceeding, provided us with the opportunity to defend the claim, cooperated with the defense of the claim, and otherwise complied with the Franchise Agreement. We may defend any proceeding arising out of your use of any Mark under your Franchise Agreement, and have no obligation to indemnify or reimburse you for any attorneys' fees or disbursements you incur if we defend the proceeding.
If we decide that it is advisable for us and/or you to modify or discontinue use of any Mark and/or use one or more additional or substitute trade or service marks, then you must comply with our instructions to do so within a reasonable time after receiving notice from us at your own
Source: Item 13 — Trademarks (FDD pages 45–47)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if the right to use a trademark is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses. Degree Wellness does not have a federal registration for all of its principal trademarks, which means some of their trademarks do not have as many legal benefits and rights as a federally registered trademark.
Degree Wellness states that they will indemnify the franchisee against, and reimburse them for, all damages for which they are held liable in any judicial or administrative proceeding arising out of the use of any Mark in compliance with the Franchise Agreement. They will also cover all costs reasonably incurred in defending against any claim brought against the franchisee or in any proceeding in which they are named as a party. However, this is provided that the franchisee has timely notified Degree Wellness of the claim or proceeding, provided Degree Wellness with the opportunity to defend the claim, cooperated with the defense of the claim, and otherwise complied with the Franchise Agreement. Degree Wellness may defend any proceeding arising out of the use of any Mark under the Franchise Agreement, and has no obligation to indemnify or reimburse the franchisee for any attorneys' fees or disbursements incurred if Degree Wellness defends the proceeding.
Degree Wellness also states that if they decide that it is advisable for them and/or the franchisee to modify or discontinue use of any Mark and/or use one or more additional or substitute trade or service marks, then the franchisee must comply with their instructions to do so within a reasonable time after receiving notice from them at the franchisee's own expense. Degree Wellness need not reimburse the franchisee for any loss of revenue due to any modified or discontinued Mark. This means that if Degree Wellness decides to change the trademark, the franchisee will have to pay for the changes and will not be compensated for any lost revenue.