What is the Effective Date in the Degree Wellness transfer agreement used to determine?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Term will begin on the Agreement Date, unless you are assuming the Franchise pursuant to a Transfer, in which case the length of the Initial Term shall be determined by the applicable Transfer Agreement.
To avoid uncertainty, the expiration date of the Initial Term is listed on Exhibit 1.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the length of the Initial Term for a franchise is determined by the applicable Transfer Agreement if the franchise is being assumed pursuant to a transfer. The Initial Term for a new Degree Wellness franchise begins on the Agreement Date and lasts for 10 years. The expiration date of the Initial Term is listed on Exhibit 1 of the Franchise Agreement.
For a prospective franchisee, this means that if you are buying an existing Degree Wellness franchise from a previous owner, the remaining term of your franchise agreement will be based on the original agreement's terms as outlined in the transfer agreement. This is different from starting a new franchise, where the term begins on the agreement date.
It is important for potential Degree Wellness franchisees to carefully review the transfer agreement and Exhibit 1 to understand the exact expiration date of the franchise term they are assuming. This will impact their long-term business planning and renewal options. Understanding the term length is a crucial part of assessing the value and potential of acquiring an existing Degree Wellness franchise.