Upon termination or expiration of the Degree Wellness franchise, what must a franchisee immediately cease using?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Confidential Information.
You agree that on termination or expiration of the Franchise you will immediately cease to use any of the Confidential Information and agree not to use it in any business or for any other purpose.
You further agree that all non-disclosure and related covenants set forth in Section 9 above shall survive such termination or expiration and you will immediately return to us all copies of the Operations Manual and any written Confidential Information or other confidential materials that we have loaned or provided to you.
- 16.2 Marks. Use of the Marks and Copyrightable Works after the termination or expiration of the Studio Franchise will constitute the unlawful use of our intellectual property rights, which include trademarks and service marks. You agree that after the termination or expiration of the Franchise you will:
- a. not directly or indirectly at any time identify any business with which you are associated as a current or former Degree Wellness franchise or franchisee;
- b. not use any Mark, any colorable imitation of any Mark, or any Copyrightable Works in any manner or for any purpose, or use for any purpose any trademark or other commercial symbol that suggests or indicates an association with us;
- c. return to us or destroy (whichever we specify) all customer lists, forms and materials containing any Mark or any Copyrightable Works or otherwise relating to a Degree Wellness franchise;
- d. remove all Marks affixed to uniforms or, at our direction, cease to use those uniforms; and
e. take any action that may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately cease using any of the Confidential Information. This includes refraining from using it in any business or for any other purpose. Additionally, all non-disclosure covenants outlined in Section 9 of the agreement remain in effect even after termination or expiration. The franchisee is also required to promptly return all copies of the Operations Manual and any written Confidential Information or other confidential materials that Degree Wellness has provided.
Furthermore, the franchisee must discontinue using Degree Wellness's Marks and Copyrightable Works. This means they cannot identify any business they are associated with as a current or former Degree Wellness franchise. They are prohibited from using any Mark, imitation of any Mark, or any Copyrightable Works for any purpose, or using any trademark or commercial symbol that suggests an association with Degree Wellness. The franchisee must also remove all Marks from uniforms or stop using the uniforms altogether, as directed by Degree Wellness. They must also take action to cancel any registrations related to the use of any Mark.
In practical terms, this means a former Degree Wellness franchisee must completely disassociate themselves from the Degree Wellness brand upon termination or expiration of the franchise agreement. This includes not only ceasing the use of proprietary information and branding but also actively taking steps to remove any indication of past affiliation. This is a standard practice in franchising to protect the brand's integrity and prevent confusion among customers. Failure to comply with these requirements could result in legal action by Degree Wellness to protect its intellectual property rights.