When is the Degree Wellness transfer fee of $10,000.00 due?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration, and not just on
those conditions set forth in our 6 month deficiency notice. If we send a notice of non-renewal, it will state the reasons for our refusal to renew.
c. Renewal Agreement; Releases. To renew the Franchise, Degree Wellness, you and your Principal Owners must execute the form of Franchise Agreement and any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation of Studio Franchises (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise), except that no initial franchise fee will be payable upon renewal of the Franchise. The terms of the Franchise Agreement that you must execute upon renewal, and any other agreements we may require, may differ materially from those contained in this Agreement, including the possibility of increased Continuing Franchise Fees and Fund contributions. Your right to renew will be contingent upon your acceptance of the new terms. You must pay
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a renewal fee of $10,000.00 is due concurrently with signing the renewal Franchise Agreement. This fee is specifically associated with the renewal of the franchise agreement, not a transfer of ownership.
This means that if a franchisee wishes to renew their franchise agreement with Degree Wellness, they must pay the $10,000.00 renewal fee at the time they sign the new agreement. This is in addition to any other requirements for renewal, such as executing general releases and accepting the terms of the new Franchise Agreement, which may differ materially from the original agreement. The new terms could include increased Continuing Franchise Fees and Fund contributions.
It is important for prospective franchisees to understand the conditions and costs associated with renewing their franchise agreement, as these can significantly impact the long-term profitability and viability of their Degree Wellness studio. Franchisees should carefully review the renewal terms and conditions and seek professional advice before making a decision to renew.