After the termination or expiration of the Degree Wellness agreement, for how long does the non-competition agreement apply?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Non-Competition. During the Agreement Term, Licensed Provider will not, 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 the Studio. Licensed Provider's duties and obligations under this Section 10.3(a) shall survive for two (2) years following any termination or expiration of this Agreement; provided, however, that following such termination or expiration of this Agreement, this covenant shall only apply with respect to a competitive business that has a place of business located within a five (5) mile radius of the location of the Premises.
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 non-competition agreement lasts for a specific duration after the termination or expiration of the franchise agreement. Specifically, the Licensed Provider's duties and obligations under the non-competition agreement survive for two years following any termination or expiration of the agreement.
However, this non-competition covenant has a geographic limitation. After the agreement ends, the non-competition clause only applies to competitive businesses with a place of business located within a five-mile radius of the original Degree Wellness location's premises. This means a former franchisee could potentially operate a similar business outside that five-mile radius without violating the agreement.
In addition to the geographic and time limitations, it is important to note that this non-competition agreement is only one aspect of the restrictive covenants. The franchisee is also subject to non-disparagement and non-solicitation clauses, which have their own terms and durations as described in the FDD.