Can a Degree Wellness developer assign their rights under the Development Agreement to another party?

According to Degree Wellness's 2025 Franchise Disclosure Document, a developer's rights under the Development Agreement are personal and cannot be sold, transferred, or assigned without the franchisor's prior written consent. This consent can be withheld at Degree Wellness's sole discretion. This means that a developer cannot freely transfer their rights to another party without first obtaining approval from Degree Wellness.

However, there is an exception to this rule. If the developer is an individual or a general partnership, they have the right to assign their rights under the Development Agreement to a corporation or limited liability company that is wholly owned by them. This assignment must be according to the same terms and conditions as provided in the developer's initial Franchise Agreement.

Degree Wellness, on the other hand, retains the right to assign the Development Agreement in whole or in part at its sole discretion. This clause gives Degree Wellness flexibility in managing its franchise network and allows it to transfer its obligations and rights to another party without needing the developer's consent. This is a common practice in franchising, as it allows the franchisor to adapt to changing business conditions and strategic priorities.