When transferring a Degree Wellness franchise, what must the franchisee and their Principal Owners comply with?

According to Degree Wellness's 2025 Franchise Disclosure Document, when transferring a franchise, both the franchisee and their Principal Owners have several obligations to fulfill. They must provide Degree Wellness with the proposed new owner's information, ensuring the new owner demonstrates the aptitude and financial resources to operate the franchise successfully.

Additionally, the franchisee must ensure that all outstanding amounts owed to Degree Wellness or its affiliates are paid in full. The new owner and their director must successfully complete Degree Wellness's initial training program. If there's a lease for the premises, the landlord's consent to the transfer is required. A transfer fee must be paid to Degree Wellness, as detailed in Item 6 of the FDD.

Furthermore, the franchisee and their Principal Owners must sign a general release in favor of Degree Wellness, its affiliates, and their respective officers, directors, employees, and agents. They must also comply with all post-termination obligations outlined in the Franchise Agreement. The new owner is required to agree to remodel the franchise and premises to meet current standards. Finally, the new owner must assume all obligations under the existing Franchise Agreement or, at Degree Wellness's option, sign a new Franchise Agreement using the then-current form.