What minimum ownership interest must Principal Owners collectively maintain in a Degree Wellness franchise during the term of the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2-2. Minimum individual and aggregate Principal Owner ownership percentage required at all times during the Term of this Agreement:
- 2-2.1 During the Term of this Agreement, the Principal Owners together must have a "controlling interest" (i.e., a 100 percent "ownership interest" of the equity, voting control and profits) in Franchise owner.
- 2-2.2 Unless otherwise permitted, the required minimum "ownership interest" of each Principal Owner during the Term of this Agreement is as set forth above.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Principal Owners must collectively maintain a controlling interest in the franchise. Specifically, the Principal Owners together must have a 100 percent ownership interest of the equity, voting control, and profits of the Franchise owner during the entire term of the agreement.
This requirement ensures that the Principal Owners are fully committed to the Degree Wellness franchise and have the authority to make decisions regarding its operation. It also aligns their interests with the success of the franchise, as they directly benefit from its profitability and growth.
Prospective franchisees should carefully consider this ownership requirement and ensure they can meet it throughout the term of the franchise agreement. Any changes to the ownership structure must be approved by Degree Wellness, and failure to maintain the required ownership percentage could result in a breach of the agreement.