What costs and expenses are included in the indemnification obligations of a Degree Wellness franchisee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3 Responsibility for Acts and Omissions; Indemnification.
- a. You acknowledge that you are the sole and independent owner of your Franchised Business, you are and will be in full control thereof, and you will conduct the business solely in accordance with your own judgment and discretion, subject only to the provisions of this Agreement. As indicated in Section 8.1, you must conspicuously identify yourself, internally and to third parties, as the independent owner of the Franchised Business and as a franchisee of Degree Wellness, and neither you nor any of your employees should represent to any third parties that you are employees or agents of Degree Wellness. You agree that as between you and us, you are solely responsible for the effects, outcomes and consequences of your acts and omissions and the acts and omissions of your employees, representatives and agents in connection with or relating to the operation of your Franchised Business.
- b. We will not assume any liability or be deemed liable for any agreements, representations, or warranties you make that are not expressly authorized under this Agreement, nor will we be obligated for any damages to any person or property directly or indirectly arising out
of the operation of the business you conduct pursuant to this Agreement, whether or not caused by your negligent or willful action or failure to act or acts or omissions deemed to be professional malpractice.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are responsible for the effects, outcomes, and consequences of their actions and omissions, as well as those of their employees, representatives, and agents, in connection with the operation of their franchised business. This means a Degree Wellness franchisee is considered the sole and independent owner of their business and is fully in control, subject to the provisions outlined in the Franchise Agreement. Franchisees must also identify themselves as independent owners and franchisees of Degree Wellness, ensuring that neither they nor their employees represent themselves as employees or agents of Degree Wellness.
Degree Wellness will not assume liability for any unauthorized agreements, representations, or warranties made by the franchisee. Furthermore, Degree Wellness is not obligated for damages to any person or property that arise directly or indirectly from the operation of the franchisee's business. This includes damages caused by negligent or willful actions, failures to act, or acts or omissions deemed professional malpractice.
In practical terms, this section of the FDD emphasizes that Degree Wellness franchisees operate independently and bear the responsibility for their business's operations. Franchisees should ensure they have adequate insurance coverage and legal counsel to protect themselves from potential liabilities arising from their business activities. This also highlights the importance of adhering to the Franchise Agreement and operating within the bounds of authorized representations and warranties to avoid potential disputes and liabilities with Degree Wellness.