What is the dependency for the Franchisee to assign the lease to the Franchisor or its affiliates for a Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee is permitted to assign their lease to Degree Wellness or its affiliates under specific circumstances. This assignment is contingent upon the expiration (without renewal) or earlier termination of the Franchise Agreement. The landlord consents to this assignment and agrees not to impose any assignment fees or accelerate rent payments related to the assignment. The landlord also agrees not to require Degree Wellness to pay any past due rent or other financial obligations of the franchisee, as the landlord will look solely to the franchisee for any outstanding debts incurred before the assignment.

This clause protects Degree Wellness by ensuring they can take over the lease without additional financial burdens if the franchise agreement ends. It also provides a clear path for the franchisee to exit the lease agreement under these specific conditions. The landlord's consent simplifies the process, preventing potential disputes or delays in the lease transfer.

This arrangement is beneficial for all parties involved. Degree Wellness gains control over the location if the franchisee exits, the franchisee can transfer the lease without penalties upon termination or expiration of the agreement, and the landlord has assurance that the lease can continue with a stable tenant like Degree Wellness or its affiliates. This clause provides a structured and agreed-upon process for lease assignment, reducing uncertainty and potential legal complications.