Who is responsible for paying the $10,000 transfer fee for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
y the Franchise. The Proposed New Owner shall be responsible for any wages and compensation owed to, and the travel and living expenses (if the Initial Training program is not held virtually in the future, and including all transportation costs, room, board and meals) incurred by, the attendees who attend the Initial Training program;
- d. if your
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee decides to transfer their franchise to a new owner, the franchisee is responsible for paying the transfer fee. Specifically, the selling franchisee must pay Degree Wellness a non-refundable transfer fee of $10,000. This fee must be paid concurrently with the execution of the Transfer Agreement.
In addition to the $10,000 transfer fee, the selling franchisee is also responsible for reimbursing Degree Wellness for any reasonable expenses the company incurs while investigating and processing the proposed new owner. This reimbursement is required even if the transfer is not completed for any reason. This means that a franchisee could incur costs beyond the $10,000 transfer fee, even if the sale of the franchise does not go through.
Furthermore, the proposed new owner is responsible for their own expenses related to initial training. The new owner must also agree to make any necessary capital expenditures to remodel, equip, modernize, and redecorate the franchise location to meet Degree Wellness's current standards. The new owner must also assume all of the seller's obligations under the existing franchise agreement or execute a new franchise agreement with Degree Wellness.