Who collects the funds for medical services at a Degree Wellness franchise?
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.
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, the professional corporation collects all funds for medical services provided at a Degree Wellness franchise. This arrangement is part of the Management Agreement between the franchisee and a Licensed Provider, which is required if the franchisee operates a Studio Management Business. The Licensed Provider must be authorized to provide healthcare services under local and state laws. This structure is particularly relevant in states that prohibit non-licensed individuals or entities from owning facilities that offer medical services.
In this model, the Licensed Provider, which can be one or more licensed individuals or a professional corporation, conducts a good faith exam to establish a patient/physician relationship and create a plan of care, especially for IV therapy. A registered nurse, supervised by a physician, then administers the IV. The franchisee provides the nursing staff through a staffing agreement, handling payroll services for the nurse, while the physician supervises the nursing staff.
Furthermore, the franchisee provides payroll, accounting, tax filing, and other administrative services as directed by the professional corporation. This division of responsibilities ensures compliance with healthcare regulations while allowing the franchisee to manage the business aspects of the studio. This arrangement also ensures that Degree Wellness franchisees are not required to enroll in state or federal reimbursement programs, as the services offered are not reimbursable by Medicare.