Who is prohibited from soliciting Degree Wellness clients after the termination of the franchise agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a few parties are restricted from soliciting Degree Wellness clients. Specifically, the franchisee, any Principal Owner, and any member of their immediate families are prohibited from soliciting wellness or related services or products from anyone who was a member or client of the Degree Wellness franchise within the two-year period prior to the termination, transfer, or expiration of the agreement. This restriction extends for a period of two years following the termination, transfer, or expiration.

This non-solicitation clause is designed to protect Degree Wellness's client base and prevent former franchisees from unfairly competing by leveraging relationships established during the franchise term. The term 'Principal Owner' typically refers to individuals with a significant ownership stake or controlling interest in the franchise entity. Immediate family members usually include spouses, parents, children, and siblings.

For a prospective Degree Wellness franchisee, this means that upon leaving the system, they and their close family members cannot actively target Degree Wellness clients for their own competing ventures for two years. This restriction is a common practice in franchising to safeguard the brand's goodwill and customer relationships. Franchisees should carefully consider the implications of this clause, especially if they plan to remain in the same industry after exiting the Degree Wellness system. Understanding the scope and duration of this restriction is crucial for future business planning.