Is the sub-license to use Degree Wellness's marks assignable?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 With the prior consent of Degree Wellness, Management Company hereby grants Licensed Provider a revocable, non-assignable and non-exclusive sub-license to use certain identifying trade and service marks, names, service marks and other commercial symbols, including the marks "d" (stylized) and "DegreeWellness" and certain associated designs, artwork, and logos (as may be changed by Degree Wellness from time to time, the "Marks"), as well as certain System materials, forms, intellectual property and décor items, during the Agreement Term. Licensed Provider hereby agrees to use the Marks in accordance with all applicable laws, rules and regulations, in accordance with the rules and requirements of Degree Wellness, and under
the direction of Management Company. Licensed Provider acknowledges and agrees that it has no right, title or interest in or to the Marks, or any System materials, forms, intellectual property and décor items, and that Degree Wellness is the sole owner thereof. This license shall be deemed to end automatically upon the termination 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, the sub-license granted to the Licensed Provider to use Degree Wellness's marks is not assignable. Specifically, with Degree Wellness's prior consent, the Management Company grants the Licensed Provider a revocable, non-assignable, and non-exclusive sub-license to use Degree Wellness's identifying trade and service marks, names, service marks, and other commercial symbols, including the marks "d" (stylized) and "DegreeWellness".
This means that a franchisee (Licensed Provider) cannot transfer or assign their rights to use Degree Wellness's trademarks to another party without explicit permission from Degree Wellness. This restriction ensures that Degree Wellness maintains control over its brand and how it is represented in the marketplace. The franchisee's rights to use the marks are tied directly to their agreement with the Management Company and Degree Wellness.
The sub-license also includes the use of certain System materials, forms, intellectual property, and décor items during the Agreement Term. The Licensed Provider must use the Marks in accordance with all applicable laws, rules, and regulations, as well as the rules and requirements of Degree Wellness, and under the direction of the Management Company. The Licensed Provider acknowledges that they have no right, title, or interest in the Marks or any System materials, as Degree Wellness is the sole owner.
This sub-license automatically ends upon the termination of the Studio Management Agreement. This provision reinforces Degree Wellness's control over its brand and ensures that only authorized and contracted parties can use its trademarks and intellectual property. Prospective franchisees should understand that the right to use Degree Wellness's marks is contingent upon maintaining a valid agreement and adhering to Degree Wellness's standards and guidelines.