Is Degree Wellness permitted to assign the franchise contract?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| transfer | ||
| any | ||
| of | ||
| the | ||
| information | ||
| contained | ||
| in | ||
| those | ||
| accounts | ||
| and | ||
| records (other than patient records | ||
| needed for their continuing care) to, | ||
| or | ||
| for | ||
| use | ||
| by, | ||
| any | ||
| competitive | ||
| business. | ||
| j. Assignment of contract by us | Section 14.3 | Fully transferable by us. |
| k. "Transfer" by you-defined | Section 14 | Transfer includes any voluntary, involuntary, direct or indirect assignment, sale, gift, exchange, grant of a security interest or change of ownership in the Franchise Agreement, the franchise or its assets, or any interest in the franchise. |
| l. Our approval of transfer by you | Section 14.4 | You may not transfer the Franchise Agreement, the franchise or its assets or any interest in the franchise without our approval. We will not unreasonably withhold approval if you are in full compliance with the Franchise Agreement. |
| m. Conditions for our approval of transfer | Section 14.5 | If you propose to transfer the Franchise Agreement, the franchise or its assets, or any interest in the franchise, or if any of your Principal Owners proposes to transfer a controlling interest in you or make a transfer that is one of a series of transfers which taken together would constitute the transfer of a controlling interest, then you must apply to us for approval of |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness is permitted to assign the franchise agreement. Specifically, the FDD states that the franchise agreement is fully transferable by Degree Wellness.
This means that Degree Wellness has the right to transfer its obligations and rights under the Franchise Agreement to another party without needing the franchisee's consent. This is a standard clause in many franchise agreements, giving the franchisor flexibility in the event of a sale, merger, or other business restructuring.
However, franchisees are not given the same freedom. The FDD states that franchisees cannot transfer the Franchise Agreement, the franchise, or its assets without Degree Wellness's approval. Degree Wellness states that it will not unreasonably withhold approval if the franchisee is in full compliance with the Franchise Agreement. If a franchisee wishes to transfer their franchise, they must apply to Degree Wellness for approval and adhere to their procedures. The person or entity to whom the franchisee wishes to make the transfer must also apply to Degree Wellness for acceptance as a franchisee and provide all required information and documentation for evaluation. The new owner must also have sufficient business experience.