What is Degree Wellness's stance on breaches of the non-competition agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ctors, or agents who may have access to the Confidential Information. You acknowledge and agree that we are
under no duty or obligation to you to enforce any such Agreements for your or our benefit. Your duties and obligations with respect to Confidential Information shall survive the Transfer, termination or expiration of this Agreement.
9.3 Non-Competition Agreement and Other Restrictive Covenants.
- a. Non-Competition. You agree that we would be unable to protect the Confidential Information against unauthorized use or disclosure, and would be unable to encourage a free exchange of ideas and information among Degree Wellness franchises, if franchise owners of Degree Wellness franchises were permitted to hold interests in any competitive businesses (as described below). Therefore, during the Term of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, shall directly or indirectly perform services for, or have any direct or indirect interest as an owner, investor, partner, director, officer, employee, manager, consultant, representative, or agent in, any business that offers products or services the same as or similar to those offered or sold at Degree Wellness Studio franchises; provided, however, that the ownership of one percent (1%) or less of a publicly traded company will not be deemed to be prohibited by this Paragraph.
- b. Non-Disparagement. You agree that during the Term of this Agreement, and thereafter following any Transfer, termination or expiration of this Agreement, neither you, nor any Principal Owner, nor any member of your immediate family or of the immediate family of any Principal Owner, will directly or indirectly make any negative or critical statements to any third parties, either verbally or in any other form or media, about (a) us, the Franchise, any of our franchisees, or any of their respective products, services, businesses or business practices, or (b) the actions, operations or character of any of our or their respective owners, officers, directors, employees, consultants or agents.
- c. Non-Solicitation.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the company takes breaches of the non-competition agreement seriously to protect its confidential information and maintain a fair exchange of ideas among franchisees. Degree Wellness states that it would be unable to protect its confidential information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among Degree Wellness franchises if franchise owners were permitted to hold interests in any competitive businesses.
The non-competition agreement states that during the term of the agreement, the franchisee, any principal owner, or any member of their immediate family cannot directly or indirectly perform services for or have any interest in any business that offers similar products or services to Degree Wellness Studio franchises. An exception exists for ownership of one percent or less of a publicly traded company.
If a franchisee is not in compliance with their obligations, Degree Wellness has the right to deny access to the Degree Wellness website or Intranet, remove the franchised business from the website's locator page, remove the franchised business from lists for referred inquiries or approved vendor discounts, and remove the franchised business from alliance programs. Degree Wellness may take these actions in addition to or instead of providing a notice of default or termination. The FDD also states that if any of the non-competition or non-solicitation agreements are deemed unenforceable, the franchisee agrees that the invalid provision will be modified or limited to the extent necessary to make it valid and enforceable.