Who constructs or builds out the Degree Wellness Studio for use by the PC?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
As further described below, to operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Studio. A "PC" 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. In such an arrangement:
- i) You, as franchisee, will construct or build-out the Studio for use by the PC.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is responsible for the construction or build-out of the Degree Wellness Studio. The studio is then used by a 'PC' (Professional Corporation) to operate the business. The PC will be one or more licensed individuals, or a professional corporation or similar entity, that is duly authorized to provide health care services under local and state laws.
This arrangement is structured so that the franchisee manages the business aspects of the studio, while the PC focuses on providing health care services. The franchisee, therefore, handles the initial construction and setup of the studio to meet Degree Wellness's standards. The franchisee must enter into a management agreement with the PC, which must be approved by Degree Wellness, ensuring compliance with all applicable laws and regulations of the state in which the studio is located.
This division of responsibilities allows Degree Wellness to offer franchises in states where non-licensed individuals or entities are not permitted to own healthcare practices. By separating the business management from the healthcare operations, Degree Wellness can expand its franchise network while adhering to legal requirements. The franchisee's role in constructing the studio is a crucial first step in establishing the Degree Wellness business, setting the stage for the PC to deliver health-related services under the Degree Wellness brand.