Under what conditions is Degree Wellness entitled to temporary and permanent injunctions?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
17.8 Specific Performance; Injunctive Relief; Liquidated Damages.
- a. Equitable Remedies. Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to the entry of temporary and permanent injunctions and orders of specific performance to (1) enforce the provisions of this Agreement relating to your use of the Marks and non-disclosure, non-solicitation, non-disparagement, and non-competition obligations under this Agreement and any Restrictive Covenants Agreement signed by a General Manager; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance, or regulation; constitutes a danger to the public; or may impair the goodwill associated with the Marks or Degree Wellness franchises; or (3) prevent any other irreparable harm to our interests. If we obtain an injunction or order of specific performance, then you shall pay us an amount equal to the total of our costs of obtaining it, including without limitation reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damage in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness, given appropriate notice, can seek temporary and permanent injunctions without needing to post a bond under specific circumstances. These circumstances include enforcing agreement provisions related to the franchisee's use of Degree Wellness's marks, as well as non-disclosure, non-solicitation, non-disparagement, and non-competition obligations as outlined in the Franchise Agreement and any Restrictive Covenants Agreement signed by a General Manager.
Degree Wellness can also pursue injunctions to prevent any action or inaction by the franchisee or their employees that violates applicable laws, ordinances, or regulations, poses a danger to the public, or could harm the goodwill associated with the Degree Wellness marks or franchises. Additionally, injunctions can be sought to prevent any other irreparable harm to Degree Wellness's interests.
If Degree Wellness successfully obtains an injunction or order of specific performance, the franchisee is responsible for covering all associated costs. These costs encompass reasonable attorneys' and expert witness fees, costs related to investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. The franchisee also agrees to waive any claims for damages if it is later determined that the injunction or specific performance order was improperly issued.
This means that as a Degree Wellness franchisee, you are subject to potential legal action in the form of injunctions if you violate the franchise agreement, engage in illegal or harmful activities, or otherwise damage the brand. You would also be responsible for Degree Wellness's legal costs if they obtain such an injunction against you, even if the injunction is later deemed improper.