When transferring a Degree Wellness franchise, what unpaid amounts must be paid to Degree Wellness or its affiliates?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, before a franchise can be transferred, the franchisee must pay any outstanding debts to Degree Wellness and its affiliates. This includes any unpaid Initial Franchise Fee, Continuing Franchise Fees, and Fund contributions.
This requirement ensures that Degree Wellness receives all payments owed before a new owner takes over the franchise. It protects Degree Wellness's financial interests and ensures that the franchise is in good standing before the transfer is completed.
For a prospective franchisee, this means that if they are considering selling their Degree Wellness franchise, they must first settle all outstanding accounts with Degree Wellness. Failure to do so could prevent the transfer from being approved. This is a fairly standard practice in franchising, as franchisors typically want to ensure that all financial obligations are met before a transfer occurs.