What does the Degree Wellness agreement state about the Assignee's obligations under the Franchise Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
The 2025 Degree Wellness Franchise Disclosure Document addresses the transferability of the agreement by Degree Wellness itself. Specifically, Degree Wellness can fully transfer the agreement without any restrictions. This means Degree Wellness can assign the agreement to another party.
According to the FDD, the agreement will benefit any person or entity to whom it is transferred or any other legal successor to Degree Wellness's interests in the agreement. After Degree Wellness assigns the agreement to a third party who expressly assumes Degree Wellness's obligations, Degree Wellness will no longer have any performance or other obligations or liabilities under the agreement.
For a prospective franchisee, this clause means that the original entity they contracted with may change. While the new entity (the assignee) must assume the obligations of Degree Wellness, the franchisee should carefully evaluate the reputation and financial stability of any potential future assignee. This transfer clause is relatively standard in franchising, allowing the franchisor flexibility in its business operations.