Is the Degree Wellness franchise agreement transferable by Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 Transfer by Degree Wellness. You represent that you have not signed this Agreement in reliance on any owner, officer, or employee remaining with us in that capacity. We may change our ownership or form at any time in our sole discretion. This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness can transfer the franchise agreement without any restrictions. The agreement will benefit any individual or entity to whom it is transferred or any legal successor to Degree Wellness's interests.
If Degree Wellness assigns the agreement to a third party who explicitly assumes their obligations, Degree Wellness will no longer have any performance or other obligations or liabilities under the agreement. This means that a new entity could take over the franchisor's responsibilities, and Degree Wellness would be released from its duties.
This clause protects Degree Wellness by allowing them to sell the company or transfer the franchise system to another entity without needing the franchisee's approval. For a potential franchisee, this means the original company they signed with might not be the one they deal with in the future, which could bring changes in management style, support, or brand direction. It is a fairly standard clause in franchise agreements.