Does the Degree Wellness franchise agreement create a fiduciary relationship between the franchisor and franchisee?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that it does not create a fiduciary relationship between the franchisor and franchisee. The agreement specifies that both parties are independent contractors, and nothing within the agreement is intended to establish either party as a general or special agent, joint venturer, partner, or employee of the other for any purpose. This is a common arrangement in franchising, where franchisees operate their businesses independently.

This section of the Degree Wellness franchise agreement also emphasizes that Degree Wellness will not be considered the employer of the franchisee's employees, representatives, or agents. The franchisee is required to clearly identify themselves as the owner of an independent franchise in all dealings with customers, suppliers, and other parties. This reinforces the independent nature of the franchisee's business and helps to avoid any confusion about the relationship between the franchisee and Degree Wellness.

Furthermore, the Degree Wellness franchise agreement clarifies that the franchisee is solely responsible for the outcomes and consequences of their actions and omissions, as well as those of their employees, in connection with the operation of the franchised business. Degree Wellness will not assume liability for any unauthorized agreements, representations, or warranties made by the franchisee. This allocation of responsibility is typical in franchise agreements, where franchisees are expected to manage their businesses independently and bear the associated risks and liabilities.