According to the Degree Wellness franchise agreement, what constitutes a 'Transfer'?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
to pay our expenses for plan preparation or review, and site inspection.
- k. Upon receiving our consent for the Transfer or sale of the Franchise, the Proposed New Owner shall agree to assume all of your obligations under this Agreement in a form acceptable to us, and/or, at our option, shall agree to execute a new Franchise Agreement with us in the form then being used by us. We may, at our option, require that you guarantee the performance, and obligations of the Proposed New Owner.
- 14.6 Death and Disability. Upon the death or permanent disability of you or a Principal Owner, the executor, administrator, conservator or other personal representative of the deceased or disabled person must Transfer the deceased or disabled person's Interest within a reasonable time, not to exceed twelve (12) months from the date of death or permanent disability, to a person we have approved. Such Transfers, including without limitation transfers by a will or inheritance, will be subject to all the terms and conditions for assignments and Transfers contained in this Agreement. Failure to so dispose of an Interest within the 12-month period of time will constitute grounds for termination of this Agreement.
- 14.7 Effect of Consent to Transfer. Our consent to a proposed Transfer pursuant to this Section 14 will not constitute a waiver of any claims we may have against you or any Principal Owner, nor will it be deemed a waiver of our right to demand exact compliance with any of the terms or conditions of this Agreement by the Proposed New Owner. Unless otherwise specified in writing, you will be subject to all post-Transfer/post-termination obligations set forth in this Agreement.
15. TERMINATION OF THE FRANCHISE.
15.1 Event of Default. Subject to applicable law, you will be deemed to be in default under this Agreement, and we will have the right to terminate this Agreement effective upon delivery of notice of termination to you, subject only to any right to cure to the extent expressly set forth below or mandated pursuant to applicable law, if:
a. you do not develop or open the Franchise, or you (or any individuals required to attend) fail to attend and/or successfully complete any required initial training or subsequent mandatory training, in accordance with all terms and conditions (including, without limitation, time limits) provided for in this Agreement;
b. you abandon, surrender, transfer control of, lose the right to occupy the Premises of, or do not actively operate, the Franchise, or your lease for or purchase of the location of the Franchise is terminated for any reason;
c.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Degree Wellness Franchise Disclosure Document, a 'Transfer' relates to the transfer of ownership or interest in the franchise. Specifically, upon the death or permanent disability of the franchisee or a Principal Owner, the executor, administrator, conservator, or other personal representative is required to transfer the deceased or disabled person's Interest within twelve months to a person approved by Degree Wellness. These transfers, including those by will or inheritance, are subject to all terms and conditions for assignments and transfers outlined in the franchise agreement. Failure to transfer the interest within this 12-month period can result in the termination of the agreement.
Degree Wellness requires that for any proposed transfer, the Proposed New Owner must meet the brand's standards for franchisees. The new owner must have sufficient business experience, aptitude, and financial resources to operate the franchise. Additionally, the franchisee must pay any outstanding amounts owed to Degree Wellness and its affiliates, including franchise fees and contributions. The new owner's directors and designated personnel must also complete the initial training program and have all necessary licenses to perform the services offered by the franchise.
Degree Wellness's approval of a transfer does not waive any claims they may have against the original franchisee or any Principal Owner, nor does it waive their right to demand compliance with the agreement's terms from the new owner. Unless specified otherwise in writing, the original franchisee remains subject to all post-transfer obligations outlined in the agreement. This ensures that Degree Wellness maintains control over who operates its franchises and that its standards are upheld even when ownership changes.