What section of the Degree Wellness Franchise Agreement outlines the conditions for approval of Transfer?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Conditions for Approval of Transfer.
If you and your Principal Owners are in full compliance with this Agreement, both monetary and otherwise, we will not unreasonably withhold our approval of a Transfer that meets all the applicable requirements of this Section 14.
The Proposed New
Owner must be of good moral character and otherwise meet our then applicable standards for Degree Wellness Studio franchisees. For any proposed Transfer, in addition to waiving our right of first refusal, all of the following conditions must be met before or at the time of the Transfer:
a. in our belief and judgment, the Proposed New Owner must have sufficient business experience, aptitude, and financial resources to operate the Franchise;
b. you must pay any amounts owed for purchases from us and our affiliates, and any other amounts owed to us or our affiliates which are unpaid, including any Initial Franchisee Fee, Continuing Franchise Fees, and Fund contributions;
c. the Proposed New Owner's directors and such other personnel as we may designate must have successfully completed our Initial Training program and shall be legally authorized and have all licenses necessary to perform the services offered by the Franchise.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Section 14.5 of the Franchise Agreement details the conditions for approval of a transfer. This section states that if the franchisee and their Principal Owners are in full compliance with the agreement, both monetarily and otherwise, Degree Wellness will not unreasonably withhold approval of a transfer that meets all applicable requirements of Section 14.
Several conditions must be met before or at the time of the transfer. The proposed new owner must be of good moral character and meet Degree Wellness's standards for franchisees. Additionally, Degree Wellness must believe the proposed new owner has sufficient business experience, aptitude, and financial resources to operate the franchise.
Furthermore, the franchisee must pay any outstanding amounts owed to Degree Wellness or its affiliates, including any Initial Franchisee Fee, Continuing Franchise Fees, and fund contributions. The proposed new owner's directors and designated personnel must also successfully complete Degree Wellness's Initial Training program and possess all necessary licenses to perform the services offered by the franchise.