Who must approve the Management Agreement for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to signing the Franchise Agreement with us, before you begin operating the Studio Management Business, you must enter into a management agreement ("Management Agreement") with the PC. If permitted by state and local law, the PC may be the same entity as your franchisee entity or have the same owners. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's health care business and its delivery of health care services and related services and products to patients at a Studio, consistent with all applicable laws and regulations. Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, 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 will be located.
iv) You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in
compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
- v) We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Agreement between the franchisee and the Professional Corporation (PC) must be approved by Degree Wellness. The franchisee must obtain written approval from Degree Wellness before signing the Management Agreement with the PC. Degree Wellness may offer assistance in preparing the Management Agreement, but it is the franchisee's responsibility to ensure the agreement complies with all applicable laws and regulations in the state where the studio is located.
This requirement ensures that Degree Wellness maintains control over the operational standards and legal compliance of its franchised locations. The PC will own and operate the studio, providing health care services under the Degree Wellness name, while the franchisee manages the administrative and management aspects. The Management Agreement formalizes this relationship, and Degree Wellness's approval is necessary to ensure consistency and adherence to the franchise system.
For a prospective franchisee, this means they must submit their Management Agreement to Degree Wellness for review and approval before finalizing it with the PC. This process may involve revisions or modifications to the agreement to meet Degree Wellness's standards and legal requirements. The franchisee should factor in the time required for this approval process when planning the launch of their Degree Wellness studio. Degree Wellness also needs to approve the PC and its owners, but the franchisee is responsible for ensuring that the PC complies with all applicable laws, rules, and regulations of the state in which the studio is located.
It is important to note that Degree Wellness provides a general form of Management Agreement as an exhibit in its Franchise Disclosure Document, which can serve as a starting point. However, the final agreement must be tailored to the specific circumstances and approved by Degree Wellness. This ensures that all agreements align with the brand's standards and legal obligations.