What rights does Degree Wellness retain outside of the Protected Territory?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in this Paragraph 2.3, we retain all rights with respect to Studio franchises, the Marks and the System, including (by way of example only and not as a limitation): (a) the right to operate or grant others the right to operate Studio franchises physically located outside the Protected Territory on terms and conditions we deem appropriate; (b) the right to operate or offer other healthcare-related companies or franchises or enter into other lines of business offering similar or dissimilar products or services under trademarks or service marks other than the Marks, both within or outside of the Protected Territory and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); (c) the right to sell or distribute, at retail or wholesale, directly or indirectly, or via the internet or any other means, or license others to sell or distribute, via any means (including the internet and other channels of distribution) any products that bear any proprietary marks, including the Marks, whether within or outside your Protected Territory; (d) the right to own, acquire, establish, and/or operate, and license others to establish and operate, businesses different from a Franchised Business but operated under the Marks within or outside your Protected Territory, and to use other channels of distribution (for example, the internet, email, social media, telemarketing, or other direct marketing) in connection with such system(s) and/or location(s); and (e) the right to be acquired (whether though acquisition of assets, or equity interests or otherwise, regardless of the form of transaction) by a business or entity providing products and services similar to those provided by Franchised Businesses even if that business or entity operates, franchises, or licenses competitive businesses in your Protected Territory.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness retains significant rights outside a franchisee's protected territory. Degree Wellness has the right to operate or grant franchises to others for studios located outside the protected territory, under terms and conditions they deem appropriate. This means that while a franchisee has an exclusive area, Degree Wellness is not restricted from establishing other franchises elsewhere.
Degree Wellness also retains the right to operate or offer other healthcare-related companies or franchises, even those offering similar products or services, under different trademarks. These can be both within or outside the franchisee's protected territory. Degree Wellness can also use various channels of distribution such as the internet, email, social media, or telemarketing for these other ventures. This indicates that Degree Wellness can diversify its business models and market reach without being limited by individual franchise territories.
Furthermore, Degree Wellness has the right to sell or distribute products bearing their trademarks, including the "Degree Wellness" mark, at retail or wholesale, directly or indirectly, or via the internet, both within and outside a franchisee's protected territory. They can also license others to do the same. Degree Wellness can also own, acquire, establish, and operate businesses different from the franchised business but still operated under the Degree Wellness marks, within or outside the protected territory, and use various channels of distribution for these businesses. This broad reservation of rights allows Degree Wellness to maintain control over its brand and explore various business opportunities without infringing on the franchisee's protected territory.
Degree Wellness also has the right to be acquired by a business or entity providing similar products and services, even if that business operates competitive businesses within a franchisee's protected territory. This clause protects Degree Wellness's ability to pursue acquisition opportunities, even if the acquiring entity has a competitive presence in a franchisee's market. These retained rights collectively provide Degree Wellness with considerable flexibility to expand and evolve its business model, explore new markets, and adapt to changing business conditions, independent of the protected territories granted to individual franchisees.