If transferring a Degree Wellness franchise, what written agreement regarding capital expenditures must the proposed new owner make?

According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee proposes to transfer their franchise to a new owner, the proposed new owner must agree in writing to make reasonable capital expenditures. Specifically, the new owner must agree to remodel, equip, modernize, and redecorate the interior and exterior of the premises. This must be done in accordance with Degree Wellness's then-existing plans and specifications for a Degree Wellness Studio franchise. The proposed new owner must also agree to pay Degree Wellness's expenses for plan preparation or review, and site inspection.

This requirement ensures that all Degree Wellness locations maintain a consistent brand image and meet current standards. For a prospective franchisee looking to acquire an existing Degree Wellness location, this means they need to be prepared to invest in upgrades and renovations to align the studio with the franchisor's current vision. This could involve significant costs beyond the initial purchase price of the franchise.

It is important for potential buyers to carefully review the current condition of the franchise location and understand the full scope of required capital expenditures. They should also obtain detailed information about Degree Wellness's plans and specifications for remodeling and redecorating to accurately estimate these costs. Furthermore, they should clarify what expenses they will be responsible for regarding plan preparation, review, and site inspection to avoid any unexpected financial burdens during the transfer process.