Is Degree Wellness liable under the lease before it is assigned to or assumed by them?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness is not liable under the lease agreement until it is formally assigned to or assumed by them. The lease agreement explicitly states that Degree Wellness is not a party to the lease between the landlord and the franchisee, and therefore, bears no responsibility for the lease obligations unless they take over the lease.

This arrangement offers some protection to Degree Wellness, as they are not automatically responsible for the franchisee's lease obligations. However, the franchisor retains the right to cure defaults and assume the lease if the franchisee fails to meet their obligations. This clause allows Degree Wellness to maintain control over the location and operation of the Degree Wellness Studio, even if the original franchisee encounters difficulties.

For a prospective Degree Wellness franchisee, this means that Degree Wellness's involvement in the lease is limited unless the franchisee defaults or the franchise agreement is terminated. The franchisee is primarily responsible for fulfilling the lease terms and financial obligations. However, it's important to understand the conditions under which Degree Wellness might step in, as this could impact the franchisee's rights and responsibilities under the lease.