When transferring a Degree Wellness franchise, what is required regarding a general release, and who must sign it?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| aptitude and financial resources to | ||
| operate the franchise; you must pay | ||
| all amounts due us or our affiliates; | ||
| new owner and its director must | ||
| successfully | ||
| complete | ||
| our | ||
| initial | ||
| training program; your landlord must | ||
| consent to transfer of the lease, if any; | ||
| you must pay us a transfer fee (see | ||
| Item 6); you and your Principal | ||
| Owners must sign a general release in | ||
| favor of us, our affiliates, and our and | ||
| their officers, directors, employees | ||
| and agents (see Exhibit I); |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, when transferring a franchise, both you and your Principal Owners must sign a general release in favor of Degree Wellness, its affiliates, and their respective officers, directors, employees, and agents. This release is further detailed in Exhibit I of the Franchise Agreement.
This requirement means that as a franchisee looking to transfer your Degree Wellness franchise, you and any individuals considered Principal Owners will need to legally release Degree Wellness from any potential claims or liabilities. This is a standard practice in franchising to ensure a clean break between the outgoing franchisee and the franchisor, and to provide legal protection for Degree Wellness moving forward with the new franchisee.
Prospective franchisees should carefully review Exhibit I of the Franchise Agreement to fully understand the scope and implications of this general release. It is advisable to consult with a legal professional to assess the potential impact of signing such a release and to ensure that all rights and obligations are clearly understood before proceeding with the transfer of the Degree Wellness franchise.