Does the Degree Wellness franchise agreement address independent professional judgment of the franchisee and their general manager?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement stipulates that franchisees operate their franchised business according to their own judgment and discretion, subject to the agreement's provisions. Franchisees are acknowledged as the sole and independent owners of their franchised business and are responsible for their actions, omissions, and the actions of their employees. They must also identify themselves as independent owners and Degree Wellness franchisees.
However, the FDD also states that if a Degree Wellness Studio is operated through a Professional Corporation (PC), the PC employs and controls the personnel providing healthcare services. The franchisee provides management and administrative services to the PC, but the PC maintains control over healthcare decisions. The franchisee must have a management agreement with the PC, approved by Degree Wellness, ensuring compliance with local and state laws.
While the franchisee has independence in business operations, the agreement requires adherence to Degree Wellness's standards and procedures. The franchisee's general manager must comply with restrictive covenants in the agreement. This balance allows franchisees operational autonomy while maintaining brand consistency and quality standards expected within the Degree Wellness franchise system. Degree Wellness retains discretion in various decisions, provided there is a reasonable business justification.