Can Degree Wellness prescribe or approve non-disclosure, non-solicitation, non-disparagement and non-competition agreements for the Licensed Provider's employees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
disclosed to Licensed Provider or authorized for his/her/its use solely on the condition that Licensed Provider agrees, and Licensed Provider therefore does agree, that Licensed Provider (1) will not use, directly or indirectly, the Confidential Information in any business or capacity or for any purpose other than as needed in the performance of the Licensed Provider Services pursuant to and in accordance with this Agreement during and after the Agreement Term; (2) will maintain the absolute confidentiality of the Confidential Information during and after the Agreement Term and not directly or indirectly publish or otherwise disclose it to any third party; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written form or another form or media that may be copied or duplicated; and (4) will adopt and implement all reasonable procedures, including any that Degree Wellness or Management Company may prescribe from time to time, to prevent unauthorized use or disclosure of the Confidential Information, including without limitation restrictions on disclosure to or by Licensed Provider's employees, and the use of non-disclosure, non-solicitation, non-disparagement and noncompetition agreements Degree Wellness or Management Company may prescribe or approve for Licensed Provider's owners, officers, directors, employees, independent contractors, or agents who may have access to the Confidential Information. Licensed Provider and Management Company acknowledge and agree that Degree Wellness is a third-party beneficiary of the foregoing covenants and agreements, but that Degree Wellness is under no duty or obligation to Licensed Provider or Management Company to enforce any such agreements for its or Degree Wellness's benefit. Licensed Provider's duties and obligations with respect to the Confidential Information shall survive the termination or expiration of this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness or the Management Company may prescribe or approve non-disclosure, non-solicitation, non-disparagement, and non-competition agreements for the Licensed Provider's owners, officers, directors, employees, independent contractors, or agents who may have access to confidential information. Degree Wellness is identified as a third-party beneficiary of these agreements.
This means that as a Degree Wellness Licensed Provider, you may be required to implement such agreements with your personnel to protect the confidentiality of sensitive business information. These agreements aim to prevent the unauthorized use or disclosure of confidential information, solicitation of patients, and disparagement of the Degree Wellness brand.
The FDD also states that the Licensed Provider must ensure their employees enter into and deliver a "Restrictive Covenant Agreement" to the Management Company, in a form prescribed by the Management Company. This highlights the importance of adhering to these requirements to protect Degree Wellness's interests and maintain the integrity of the franchise system. The Licensed Provider is responsible for ensuring their employees comply with these agreements.