What happens to Degree Wellness's obligations under the franchise agreement after assigning it to a third party?
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 to another party without any limitations. If Degree Wellness assigns the agreement to a third party and that third party expressly assumes Degree Wellness's obligations under the agreement, Degree Wellness will no longer be responsible for any further performance, obligations, or liabilities under the agreement.
This clause means that a franchisee cannot rely on the original owners or management of Degree Wellness to remain in control. The new entity taking over the franchise agreement assumes all responsibilities, and Degree Wellness is released from any further duty.
For a prospective franchisee, this highlights the importance of carefully evaluating the franchise system itself rather than focusing on the individuals currently running Degree Wellness. The franchisee should be comfortable that the core business model and brand are strong enough to withstand a change in ownership, as Degree Wellness can transfer the agreement to a new entity that may operate differently.