What is a condition for the Franchisor's consent and execution of the Degree Wellness transfer agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer to Assignee all of his, her or its right, title and interest in and to the Transferred Interest, and each Assignee, jointly and severally, does hereby assume and agree to discharge all liabilities and obligations of the Franchisee arising under or in connection with the Franchise Agreement on or after the Effective Date. Franchisor hereby consents to the Transfer of the Transferred Interest as described in the Recitals, but such consent does not relieve Franchisee or any Owner from any
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisor's consent and execution of the transfer agreement is expressly conditional upon the franchisee's payment of all continuing franchise fees due for periods up to and through the effective date of the transfer, including any past due amounts. Specifically, a non-refundable $10,000 transfer fee must be paid concurrently with the execution of the agreement.
This condition means that a franchisee looking to transfer their Degree Wellness franchise must settle all outstanding financial obligations to the franchisor before the transfer can be finalized. This includes not only current franchise fees but also any overdue amounts. The $10,000 transfer fee adds to the cost of transferring the franchise.
This requirement protects Degree Wellness's financial interests by ensuring that franchisees do not leave with unpaid debts. Prospective franchisees should be aware of this condition, as it can affect the timing and financial aspects of transferring ownership. Franchisees should maintain up-to-date payment records to ensure a smooth transfer process.