Can the Degree Wellness Licensed Provider assign their license to use the Premises?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Management Company hereby grants Licensed Provider a revocable, nonassignable license to use the Premises, and all fixtures, equipment, and furnishings located therein, during the Agreement Term. The license to use the Premises granted by this Section 4.1 is not a lease or sublease of the Premises and this Agreement shall not be interpreted to create a landlord and tenant relationship between Management Company (or the owner of the Premises) and Licensed Provider or to give Licensed Provider any right to continued use, possession or occupancy of the Premises, except to the extent expressly stated in this Agreement. This license shall be deemed to end automatically upon the termination of this Agreement. Licensed Provider shall use all fixtures, equipment and furnishings granted by this Section 4.1 in the manner in which they are intended and in compliance with all rules and requirements of Management Company and, if applicable, its landlord; provided, however, that in all cases Licensed Provider shall have the discretion and authority to use such fixtures, equipment and furnishings to provide Studio Services only as deemed necessary or advisable by Licensed Provider in his/her discretion. Licensed Provider shall return to Management Company the Premises, fixtures, equipment, and furnishings in the same condition, reasonable wear and tear excepted, as they were in as of the date of this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the license granted to the Licensed Provider to use the premises is non-assignable. Specifically, the Management Company grants the Licensed Provider a revocable, nonassignable license to use the premises, including all fixtures, equipment, and furnishings, for the duration of the agreement.
This means a Degree Wellness Licensed Provider cannot transfer their rights to use the physical location to another party. This restriction is in place to ensure Degree Wellness maintains control over who operates at the studio location and upholds brand standards. The license to use the premises is tied directly to the agreement between the Management Company and the specific Licensed Provider.
This non-assignable clause protects Degree Wellness's interests by preventing unauthorized parties from taking over a location without their approval. For a prospective franchisee, this means they cannot sell or transfer their location rights to someone else without potentially violating the agreement. This is a fairly standard practice in franchising, as franchisors typically want to carefully vet and approve anyone operating under their brand name.