Does the Degree Wellness franchise agreement specify who is responsible for the consequences of the franchisee's acts and omissions?
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 the 2025 Degree Wellness Franchise Disclosure Document, the franchisee is responsible for the consequences of their actions and omissions in the operation of their franchised business. The agreement states that as the owner of the franchised business, the franchisee is in full control and will conduct the business according to their judgment, subject to the agreement's provisions. Franchisees must identify themselves as independent owners and Degree Wellness franchisees, ensuring that neither they nor their employees represent themselves as Degree Wellness employees or agents.
Degree Wellness will not be liable for agreements, representations, or warranties made by the franchisee that are not expressly authorized in the franchise agreement. Additionally, Degree Wellness will not be obligated for damages to any person or property resulting from the franchisee's business operations, including those caused by negligence, willful action, failure to act, or professional malpractice.
This section of the Degree Wellness franchise agreement clarifies that franchisees operate as independent entities, bearing the responsibility for their business conduct. This is a common arrangement in franchising, where franchisees assume the day-to-day operational risks and liabilities. Prospective franchisees should understand that they are responsible for their business's actions and should maintain adequate insurance coverage to mitigate potential risks associated with their operations.
This arrangement protects Degree Wellness from liabilities arising from the franchisee's independent operation of the business, while also ensuring that the franchisee has the autonomy to manage their business within the framework of the franchise agreement. Franchisees should carefully review this section of the agreement and seek legal counsel to fully understand their obligations and potential liabilities.