Under what condition is the Degree Wellness franchisee permitted to assign the lease to the franchisor?

According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee is permitted to assign their lease to Degree Wellness or its affiliates under specific conditions related to the Franchise Agreement. The franchisee can assign the lease upon the expiration (without renewal) or earlier termination of the Franchise Agreement. In such instances, the landlord consents to the assignment and agrees not to impose any assignment fees or accelerate rent payments. The landlord also agrees not to require Degree Wellness to cover any past due rent or financial obligations of the franchisee, as the landlord will seek these solely from the franchisee before the assignment.

This provision protects Degree Wellness by ensuring a smooth transition of the lease in the event the franchise agreement ends, allowing them to continue operating the location or transfer it to another franchisee without additional financial burdens related to the previous franchisee's obligations. It also benefits the franchisee by clarifying the conditions under which the lease can be assigned, providing a clear exit strategy at the end of the franchise term.

However, the document also states that Degree Wellness is not liable under the lease unless and until the lease is assigned to, or assumed by, Degree Wellness. This clause protects Degree Wellness from liabilities arising before the assignment. Furthermore, the franchisee cannot assign the lease or renew/extend its term without Degree Wellness's prior written consent, giving Degree Wellness control over the lease and the location of the franchise. This ensures Degree Wellness maintains control over the location and prevents franchisees from independently extending the lease, which could conflict with Degree Wellness's long-term strategic interests.