Who must execute a Transfer Agreement when transferring a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
y the Franchise. The Proposed New Owner shall be responsible for any wages and compensation owed to, and the travel and living expenses (if the Initial Training program is not held virtually in the future, and including all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;
- d. if your lease for the Premises requires it, the lessor must have consented to the assignment of the lease of the Premises to the Proposed New Owner;
- e. you must pay us a non-refundable Transfer fee in the amount of $10,000.00 concurrently with the execution of the Transfer Agreement, de
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, both the franchisee and their Principal Owners are required to execute a Transfer Agreement. This agreement includes a general release of any claims against Degree Wellness, its affiliates, and their respective officers, directors, and employees.
This requirement ensures that Degree Wellness is protected from potential legal issues arising from the transfer of ownership. The release covers any claims the franchisee or their Principal Owners might have against Degree Wellness, providing a clean break and preventing future disputes. This is a standard practice in franchising to safeguard the franchisor's interests during ownership transitions.
In addition to the Transfer Agreement, the proposed new owner must also meet several conditions to be approved. These include demonstrating sufficient business experience, aptitude, and financial resources, completing the initial training program, and securing the lessor's consent for the assignment of the premises lease, if required. The franchisee must also pay a non-refundable transfer fee of $10,000.00 and reimburse Degree Wellness for any expenses incurred during the investigation and processing of the proposed new owner, even if the transfer is not completed.