What is the Degree Wellness Business Associate acknowledging regarding confidentiality and privacy obligations under applicable State law?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Business Associate acknowledges that both the Business Associate and the Covered Entity may have confidentiality and privacy obligations under applicable State law. This acknowledgment is part of the Business Associate Agreement outlined in the FDD.

Furthermore, the Business Associate agrees that if any provisions within the agreement, HIPAA, HIPAA Regulations, or the HITECH Act conflict with applicable State law regarding the degree of protection provided for Protected Health Information (PHI) and patient medical records, the Business Associate is obligated to comply with the more restrictive requirements. This ensures that the highest standard of privacy and confidentiality is maintained, regardless of whether federal or state law provides greater protection.

This clause is significant for a prospective Degree Wellness franchisee because it emphasizes the importance of understanding and adhering to both federal and state laws concerning patient privacy. Franchisees must ensure their practices align with the most stringent requirements to avoid potential legal issues and maintain patient trust. This may require franchisees to seek legal counsel to fully understand their obligations under state law, particularly if those laws offer greater protection than federal regulations.