Does the Degree Wellness franchise agreement allow transfer of interest through a will?
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, the franchise agreement addresses the transfer of interest upon death. Specifically, in the event of the death of a franchisee or a principal owner, the agreement stipulates that the deceased's interest must be transferred within twelve months from the date of death. This transfer can occur through a will or inheritance.
However, all such transfers, including those executed through a will, are subject to the standard terms and conditions for assignments and transfers as outlined in the Degree Wellness franchise agreement. This means that even if the interest is transferred via a will, the individual or entity inheriting the interest must still meet Degree Wellness's requirements for new owners.
Failure to transfer the interest within the specified 12-month timeframe constitutes grounds for termination of the franchise agreement. This clause ensures that Degree Wellness maintains control over who operates its franchises, even in the event of a franchisee's death, and that the business continues to be operated according to Degree Wellness's standards.