What is a prohibited action for a Degree Wellness General Manager regarding business interests?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If Degree Wellness chooses not to have you assign the telephone numbers to it, you may not assign the telephone number to any competitive business, use automatic forwarding to the telephone number of any competitive business, or otherwise make the telephone number directly or indirectly available to any competitive business.
- b. Your Principal Owners and General Manager must immediately comply with the restrictive covenants set forth in this Agreement and any Restrictive Covenants Agreement signed by your General Manager, as applicable.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a General Manager is prohibited from certain actions regarding competitive business interests. Specifically, the General Manager must comply with the restrictive covenants outlined in the Franchise Agreement and any Restrictive Covenants Agreement they sign. This means the General Manager cannot engage in activities that would compete with the Degree Wellness franchise.
This restriction is significant because it ensures that the General Manager, who has access to the franchise's operational methods and confidential information, does not use that knowledge to benefit a competing business. The FDD emphasizes the importance of protecting Degree Wellness's confidential information and fostering open communication among franchisees, which would be undermined if individuals were allowed to hold interests in rival businesses.
For a prospective franchisee, this means that their General Manager will be legally bound not to participate in or have any ownership in businesses offering similar products or services as Degree Wellness. This obligation helps maintain the integrity of the Degree Wellness system and prevents unfair competition. Franchisees should ensure their General Managers fully understand and agree to these restrictions before hiring them. Degree Wellness may require the General Manager to sign a Restrictive Covenant Agreement.
It is important to note that the obligations extend beyond simply not owning a competing business. The General Manager is also prohibited from performing services for or holding any position (owner, investor, partner, director, officer, employee, manager, consultant, representative, or agent) in a competitive business. This comprehensive restriction aims to prevent any potential conflict of interest and protect Degree Wellness's market position.