Is there a specific definition of 'Interest' when referring to transferring interest in the Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
14.2 Interests in Franchise Owner; Reference to Exhibit 2. You and each Principal Owner represent, warrant, and agree that all "Interests" in Franchise Owner are owned in the amount and manner described in Exhibit 2. No Interests in Franchise Owner will, during the Term of this Agreement, be "public" securities (i.e., securities that require, for their issuance, registration with any state or federal authority). (An "Interest" is defined to mean any shares, units, membership interests, or partnership interests of Franchise Owner and any other equitable or legal right in any of Franchise Owner's stock, revenues, profits, rights, or assets. When referring to Franchise Owner's rights or assets, an "Interest" means this Agreement, Franchise Owner's rights under and interest in this Agreement, any Degree Wellness franchise, and the revenues, profits or assets of any Degree Wellness franchise.) You and each Principal Owner also represent, warrant, and agree that no Principal Owner's Interest has been given as security for any obligation (i.e., no one has a lien on or security interest in a Principal Owner's Interest), and that no change will be made in the ownership of an Interest other than as expressly permitted by this Agreement or
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the term "Interest" is specifically defined in the context of franchise ownership. It encompasses various forms of ownership and rights within the Franchise Owner entity.
Specifically, an "Interest" includes any shares, units, membership interests, or partnership interests held in the Franchise Owner. It also extends to any equitable or legal right associated with the Franchise Owner's stock, revenues, profits, rights, or assets. Furthermore, when referring to the Franchise Owner's rights or assets, an "Interest" includes the Franchise Agreement itself, the Franchise Owner's rights and interests within that agreement, any Degree Wellness franchise, and the revenues, profits, or assets derived from any Degree Wellness franchise.
This definition is crucial because it clarifies what aspects of the Degree Wellness franchise are subject to transfer restrictions and requirements outlined in the agreement. It ensures that all forms of ownership and financial interests are accounted for when considering transfers, maintaining the integrity and control of the Degree Wellness franchise system.