What agreements must a Degree Wellness franchisee enter into to operate a Studio Management Business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
To operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Studio. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit F-1, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules, and regulations of the state in which the Studio Management Business will be located. Attached as Exhibits F-2 and F-3, are forms of agreement required if you utilize our preferred licensed provider. A "Licensed Provider" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide health care services under local and state laws. Pursuant to the Management Agreement a Licensed Provider will provide a good faith exam. The initial good faith exam will establish the patient/physician relationship and create a plan of care as it relates to the IV therapy. Then the IV is administered by a registered nurse that is supervised by the physician. The individual franchisees will provide nursing staff to the professional corporation through a staffing agreement where the physician provides supervision to the nursing staff and the franchisee handles all payroll services for the nurse. Also, pursuant to the Management Agreement franchise will provide payroll services, accounting and tax filing services, and other administrative services as the professional corporation directs. The professional corporation will collect all funds for medical services.
Although a Studio is not a "covered entity" for purposes of HIPPA, you must comply with any and all federal, state and/or local privacy laws pertaining to your care recipients, including HIPAA and the HI-TECH Act and related laws, rules and regulations. We maintain HIPPA standards although we are not required to. In all cases, you must also comply with laws that apply generally to all businesses. You should investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to your franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee must enter into two agreements to operate a Studio Management Business. First, the franchisee must sign a Franchise Agreement with Degree Wellness. Second, the franchisee must enter into a Management Agreement with a "Licensed Provider" who will own and operate the studio. Degree Wellness must approve the Management Agreement, ensuring it complies with all applicable laws and regulations of the state where the Studio Management Business is located. Degree Wellness provides a general form of a Management Agreement as a starting point, attached as Exhibit F-1, and forms of agreement required if you utilize their preferred licensed provider, attached as Exhibits F-2 and F-3.
A "Licensed Provider" is defined as one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide health care services under local and state laws. The Management Agreement dictates that the Licensed Provider will conduct a good faith exam to establish a patient/physician relationship and create a plan of care related to IV therapy. A registered nurse, supervised by a physician, will administer the IV. The franchisee will provide nursing staff to the professional corporation through a staffing agreement, where the physician supervises the nursing staff, and the franchisee handles all payroll services for the nurse.
Furthermore, the Degree Wellness franchisee will provide payroll, accounting, tax filing, and other administrative services as directed by the professional corporation, which will collect all funds for medical services. While a Degree Wellness Studio is not a "covered entity" for HIPAA purposes, franchisees must still comply with all federal, state, and local privacy laws pertaining to care recipients, including HIPAA and the HI-TECH Act. Franchisees are also responsible for complying with all laws that generally apply to businesses and should consult with a legal advisor to ensure compliance with all applicable requirements, as violations may result in substantial civil or criminal penalties.