Does Degree Wellness's approval of advertising or promotional materials mean they have analyzed or approved the materials with respect to state, local, or administrative laws regarding health care related services?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You also agree to operate the Franchise in full compliance with all applicable laws, ordinances, and regulations, including without limitation all government regulations relating to worker's compensation insurance, advertising, unemployment insurance, the practice of health care in your state, and withholding and payment of federal and state income taxes, social security taxes, and sales taxes.
- c.
All advertising you employ must be completely factual, in good taste (in our judgment), and conform to the highest standards of ethical advertising and all legal requirements.
Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and services we offer to you and our other Degree Wellness franchisees do not include the referral of customers or patients. You must notify us in writing within 5 days of (1) the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit, that may adversely affect your and/or the Franchise's operation, financial condition, or reputation, including, without limitation, any and all claims of malpractice brought against you or any professional affiliated with you, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) your receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 FDD, Degree Wellness does not assume responsibility for ensuring that franchisees' advertising and promotional materials comply with healthcare laws. Franchisees are solely responsible for operating their franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care. This includes, without limitation, licensure, marketing, and advertising. Degree Wellness states that the services they offer to franchisees do not include the referral of customers or patients.
Degree Wellness requires that all advertising employed by the franchisee must be completely factual, in good taste, and conform to the highest standards of ethical advertising and all legal requirements. Franchisees must also secure and maintain all required licenses, permits, and certificates relating to the operation of the franchise and operate in full compliance with all applicable laws, ordinances, and regulations, including those relating to advertising and the practice of health care in their state.
Furthermore, franchisees are obligated to notify Degree Wellness in writing within 5 days of any action, suit, or proceeding, or any notice of violation of any law, ordinance, or regulation relating to health or safety that may adversely affect the franchise's operation, financial condition, or reputation. This includes claims of malpractice brought against the franchisee or any professional affiliated with them.
This indicates that while Degree Wellness may review advertising for brand consistency and general ethical standards, the ultimate responsibility for legal compliance, especially concerning healthcare regulations, rests with the franchisee. A prospective franchisee should consult with legal counsel to ensure full compliance with all applicable healthcare advertising laws and regulations in their specific location.