After termination of a Degree Wellness franchise, what must the Principal Owners and General Manager immediately comply with?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Your Principal Owners and General Manager must immediately comply with the restrictive covenants set forth in this Agreement and any Restrictive Covenants Agreement signed by your General Manager, as applicable.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the Principal Owners and General Manager must immediately comply with the restrictive covenants outlined in the franchise agreement and any Restrictive Covenants Agreement signed by the General Manager.
These restrictive covenants typically include clauses related to non-competition, non-solicitation, and confidentiality. Compliance with these covenants is crucial to protect Degree Wellness's brand, trade secrets, and customer relationships. Failure to adhere to these restrictions could result in legal action by Degree Wellness.
Prospective franchisees should carefully review the specific terms of the restrictive covenants in the franchise agreement and any associated Restrictive Covenants Agreement to fully understand their obligations upon termination. It is important to note that these obligations extend beyond the termination date and can significantly impact the franchisee's ability to engage in similar business activities in the future.