Under the Degree Wellness Franchise Agreement, what liabilities of the franchisee does the assignee assume?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 Transfer by Degree Wellness. You represent that you have not signed this Agreement in reliance on any owner, officer, or employee remaining with us in that capacity. We may change our ownership or form at any time in our sole discretion. This Agreement is fully transferable by us, without restriction, and will inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to our interests in this Agreement. After our assignment of this Agreement to a third party who expressly assumes our obligations under this Agreement, we no longer will have any performance or other obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Franchise Agreement is fully transferable by Degree Wellness without restriction, and will benefit any person or entity to whom it is transferred, or any other legal successor to Degree Wellness's interests in the Agreement. After Degree Wellness assigns the Franchise Agreement to a third party who expressly assumes Degree Wellness's obligations under the Agreement, Degree Wellness will no longer have any performance or other obligations or liabilities under the Agreement.
In simpler terms, Degree Wellness can transfer the Franchise Agreement to another party. If this new party (the assignee) explicitly agrees to take on Degree Wellness's responsibilities, then Degree Wellness is released from any further duties or liabilities under the agreement.
For a prospective franchisee, this clause means that the original franchisor, Degree Wellness, can step away from the agreement if they find another party to take over. It is important to understand who the assignee is and their capacity to fulfill the obligations of the franchise agreement. This transfer does not require the franchisee's approval.