Is the attempted assignment of Group's rights under the Degree Wellness agreement grounds for immediate termination by Staffer?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Immediate Termination.
Notwithstanding any other provision hereof, this Agreement may be terminated by Staffer for cause, upon one (1) day's prior written notice to Group, upon the occurrence of any of the following events:
- (iv) the attempted assignment or other unauthorized delegation of any of Group's rights or obligations under this Agreement;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Staffer has the right to terminate the agreement with Group immediately if Group attempts to assign or delegate any of its rights or obligations without authorization. Specifically, Staffer can provide one day's prior written notice to Group to terminate the agreement if such an event occurs.
This provision protects Staffer's interests by preventing Group from transferring its responsibilities or rights to another party without Staffer's consent. This is a common clause in franchise agreements, as franchisors need to control who operates their franchises to maintain brand standards and protect their business model. Unauthorized assignments could introduce parties who are not properly trained or vetted, potentially harming the Degree Wellness brand.
For a prospective Degree Wellness franchisee ('Group' in this context), this means they cannot sell, transfer, or otherwise assign their rights or obligations under the agreement without first obtaining written permission from Staffer. Failure to comply with this requirement gives Staffer grounds for immediate termination of the franchise agreement, which would result in the franchisee losing their business.