Who is considered the employer of the employees at a Degree Wellness franchise?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is considered the employer of their employees. This means that the franchisee, not Degree Wellness itself, is responsible for all aspects of employment, including wages, benefits, and compliance with labor laws. Degree Wellness requires that all written and electronic correspondence, paychecks, and other materials identify the franchisee as the employer and explicitly state that Degree Wellness is not the employer.

This arrangement has several implications for a prospective Degree Wellness franchisee. They will be responsible for managing all employer-related tasks, such as hiring, training, and firing employees. They must also handle payroll processing, payroll tax filings, and human resource solutions, and are required to use a vendor designated by Degree Wellness for these services. This includes paying any associated fees and adhering to any agreements required by the vendor.

Furthermore, the franchisee must ensure that all employees and independent contractors maintain a neat and clean appearance and adhere to the dress standards specified in the Degree Wellness Operations Manual. They must also have each employee and independent contractor sign a written agreement to protect Degree Wellness's confidential information, proprietary information, and trade secrets. The franchisee is also responsible for the actions and omissions of their employees.

This setup is typical in many franchise systems, where the franchisee operates as an independent business owner. While Degree Wellness sets certain standards and provides guidelines, the franchisee retains control over day-to-day operations and employment decisions, subject to the franchise agreement. This arrangement allows Degree Wellness to maintain brand consistency while enabling franchisees to manage their own workforce.