In the event of death or permanent disability of a Degree Wellness franchisee, how long does the representative have to transfer the interest?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Death and Disability. Upon the death or permanent disability of you or a Principal Owner, the executor, administrator, conservator or other personal representative of the deceased or disabled person must Transfer the deceased or disabled person's Interest within a reasonable time, not to exceed twelve (12) months from the date of death or permanent disability, to a person we have approved. Such Transfers, including without limitation transfers by a will or inheritance, will be subject to all the terms and conditions for assignments and Transfers contained in this Agreement. Failure to so dispose of an Interest within the 12-month period of time will constitute grounds for termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or a Principal Owner, their representative has a period of twelve months to transfer the deceased or disabled person's interest in the franchise. This transfer must be to a person approved by Degree Wellness.
This transfer is subject to all the standard terms and conditions for assignments and transfers outlined in the franchise agreement. Failure to transfer the interest within the specified 12-month timeframe will constitute grounds for termination of the franchise agreement. This clause ensures that Degree Wellness maintains control over who operates its franchises, even in unforeseen circumstances such as death or disability.
For a prospective Degree Wellness franchisee, this means that in the event of death or permanent disability, their estate or representative will need to act quickly to find a qualified buyer and complete the transfer process within one year to avoid termination of the franchise agreement. The potential buyer will also need to be approved by Degree Wellness and meet their standards for franchisees.