What does Degree Wellness consider to be included in 'Management Company Services'?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 For purposes of this Agreement, the phrase "Management Company Services" specifically includes the following, except to the extent any of the foregoing would constitute Studio Services (as defined in Section 3.1 below): [Subject to change in order to comply with applicable law]
(a) Acquiring the site for Management Company and Licensed Provider to provide their respective services for the operation of the Studio under this Agreement (the "Premises").
The Premises shall comply in all respects with Degree Wellness's System requirements.
Management Company shall perform all tenant responsibilities under the lease agreement for the Premises (or similar responsibilities if Management Company owns the Premises), including, but not limited to, paying rent, acquiring and maintaining connections to utilities, phone and internet services, and performing, or causing to be performed, maintenance, repair, replacement, and janitorial services;
(b) Acquiring all fixtures, equipment, and furnishings necessary for the operation of a Degree Wellness Studio Management Business and the operation of the Studio, and maintaining, repairing, and replacing such fixtures, equipment, and furnishings;
(c) Developing and implementing a business plan for the Studio and managing the operational workflow of the Studio business, specifically, scheduling patient appointments and responding to patient inquiries, determining fees charged for the provision of supplies and devices to patients, assisting the Licensed Provider in the billing and the collection of fees payable for Licensed Provider's provision of the Studio Services, devices, and supplies to patients pursuant to Section 3.1(c), arranging for participation in discount medical plan organizations, including collection of fees from third-party payors, and maintaining patient records, including the confidentiality thereof, under the direction of Licensed Provider, pursuant to Section 3.1(d) below;
(d) Providing office management for the Studio, including purchasing supplies (including office, health and wellness supplies), computer and peripherals, practice management software, off-the-shelf software, general secretarial services, answering telephones and responding to emails and facsimiles, and procuring uniforms;
(e) Hiring, training, scheduling, supervising and managing all administrative and office staff of the Studio Management Business and the Studio, as applicable, and ensuring that the Studio Management Business and Studio business are sufficiently and adequately staffed; provided, however, that Licensed Provider, and not Management Company, shall be solely responsible for assigning and supervising staff for purposes of providing the Studio Services;
(f) Administering payroll and all insurance and fringe benefit plans of Licensed Provider and any employees of Licensed Provider;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, 'Management Company Services' encompass a range of responsibilities, excluding any that would constitute 'Studio Services'. These services include acquiring a suitable site for both the Management Company and the Licensed Provider to operate the Degree Wellness Studio, ensuring the premises meet Degree Wellness's system requirements. The Management Company is also responsible for fulfilling all tenant obligations under the lease agreement, such as paying rent and maintaining utility connections.
Further responsibilities of the Management Company include acquiring and maintaining all necessary fixtures, equipment, and furnishings for the Studio's operation. They are tasked with developing and implementing a business plan for the Studio, managing the operational workflow, scheduling patient appointments, responding to inquiries, and determining fees for supplies and devices provided to patients. The Management Company also assists the Licensed Provider in billing and collecting fees, arranging participation in discount medical plan organizations, and maintaining patient records under the Licensed Provider's direction.
Additionally, the Management Company provides office management services, including purchasing supplies, managing computer systems and software, providing secretarial services, handling communications, and procuring uniforms. They are also responsible for hiring, training, scheduling, supervising, and managing administrative and office staff, ensuring adequate staffing for both the Management Company and the Studio. However, the Licensed Provider retains sole responsibility for assigning and supervising staff involved in providing Studio Services. Finally, the Management Company administers payroll and all insurance and fringe benefit plans for the Licensed Provider and their employees.