Does the landlord have to consent to the assignment of the lease to Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
obligations to Landlord for rents and other financial obligations accrued prior to the assignment of the Lease, in the event of such assignment, Franchisor or any affiliate designated by Franchisor will agree to assume from the date of assignment all obligations of Franchisee remaining under the Lease, and in such event Franchisor or any affiliate will assume Franchisee's occupancy rights, and the right to sublease the Premises, for the remainder of the term of the Lease. In the event of such assignment, neither Franchisor nor any affiliate will be required to pay to Landlord any security deposit.
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- Notwithstanding anything contained in this Lease, Franchisor is expressly authorized, without the consent of the Landlord, to assign the Lease, or to sublet all or a portion of Premises, to an authorized franchisee. If Franchisor elects to assign the Lease, the subtenant/franchisee shall expressly assume all of Franchisor's obligations under the Lease, and Franchisor shall be released of all obligations to Landlord under the Lease as of the date of assignment. If Franchisor elects to sublet the premises, such subletting shall be subject to the terms of this Lease, the subtenant/franchisee shall expressly assume all of Franchisor's obligations under the Lease, and Franchisor shall remain liable for the performance of the terms of this Lease. Franchisor shall notify Landlord as to the name of the subtenant/franchisee within 10 days after such assignment or subletting, as applicable.
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- Franchisee will not assign the Lease or renew or extend the term thereof without the prior written consent of Franchisor.
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- Neither Landlord nor Franchisee shall amend or otherwise modify the Lease in any manner that could materially affect any of the foregoing requirements without the prior written consent of Franchisor.
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- All notices hereunder shall be by certified mail to the addresses set forth above or to such other addresses as the parties hereto may, by written notice, designate.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the landlord's consent is not required if Degree Wellness assigns the lease to another franchisee. Specifically, Degree Wellness is authorized to assign the lease or sublet the premises to an authorized franchisee without the landlord's consent. If Degree Wellness elects to assign the lease, the new franchisee must assume all of Degree Wellness's obligations under the lease, and Degree Wellness will be released from all obligations to the landlord as of the assignment date. Degree Wellness must notify the landlord of the new franchisee's name within 10 days after the assignment or subletting.
However, the franchisee is not permitted to assign the lease or renew/extend its term without Degree Wellness's prior written consent. Furthermore, the landlord and franchisee cannot amend or modify the lease in any way that could materially affect the requirements outlined in the lease addendum without Degree Wellness's prior written consent.
In the event that the Franchise Agreement expires or is terminated early, the franchisee will be permitted to assign the lease to Degree Wellness or its affiliates. In this scenario, the landlord consents to the assignment and agrees not to impose any assignment fees or accelerate rent payments. The landlord also agrees not to require Degree Wellness to pay any past due rent or financial obligations of the franchisee, as the landlord will look solely to the franchisee for any outstanding debts incurred before the assignment.
These stipulations protect Degree Wellness by ensuring control over the lease and premises, while also providing the franchisee with some flexibility in assigning the lease under specific conditions. Prospective franchisees should carefully consider these lease terms and their implications for the operation and potential transfer of their Degree Wellness studio.