Does the Degree Wellness franchise agreement consider a transfer of interest by will as a 'Transfer'?
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 or disability of the franchisee or a principal owner. Specifically, it states that any transfer of interest, including those made through a will or inheritance, are subject to all the terms and conditions for assignments and transfers outlined in the agreement.
This means that if a Degree Wellness franchisee or a principal owner dies or becomes permanently disabled, their interest in the franchise must be transferred within 12 months to a person approved by Degree Wellness. This transfer is not automatic; the individual inheriting the franchise must meet Degree Wellness's standards and be approved by them. This process ensures that the new owner is qualified to maintain the standards of the Degree Wellness franchise.
Failure to transfer the interest within the specified 12-month period can result in the termination of the franchise agreement. This clause underscores the importance Degree Wellness places on maintaining consistent operational standards and having qualified individuals manage their franchises, even in unforeseen circumstances such as death or disability. Prospective franchisees should carefully consider this provision and discuss with Degree Wellness the specific requirements and procedures for such transfers to ensure a smooth transition in the event of death or disability.