Is the Degree Wellness franchise agreement transferable by the Franchisor?
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 has the right to transfer the franchise agreement. The document states that Degree Wellness may change its ownership or form at any time at its sole discretion. Furthermore, the franchise agreement is fully transferable by Degree Wellness without restriction. This transfer will benefit any person or entity to whom it is transferred, or any other legal successor to Degree Wellness's interests in the agreement.
After Degree Wellness assigns the agreement to a third party who expressly 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 franchise system, and Degree Wellness would be released from its responsibilities, which could impact franchisees.
This clause protects Degree Wellness, allowing it to sell the company or merge with another entity without needing the franchisees' permission. However, it also introduces an element of uncertainty for franchisees, as they may find themselves dealing with a completely different franchisor during the term of their agreement. Prospective franchisees should carefully consider this provision and evaluate the potential implications of a transfer of ownership.