Must a Degree Wellness franchisee have a Management Agreement in effect with a PC at all times?

According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee operating a Studio Management Business must maintain a Management Agreement with a PC (Professional Corporation) throughout the entire Initial Term of the Franchise Agreement. The PC is responsible for owning and operating the studio, providing healthcare services under local and state laws, and employing/controlling the personnel who deliver these services. The franchisee, under the Management Agreement, provides management and administrative support to the PC, ensuring alignment with the Degree Wellness system.

This requirement ensures that the healthcare services offered at the Degree Wellness studio are managed by licensed professionals or entities legally authorized to provide such services. The Management Agreement outlines the responsibilities of both the franchisee (Studio Management Business) and the PC, ensuring a clear division of labor where the franchisee handles administrative tasks and the PC focuses on healthcare operations. Degree Wellness must approve the Management Agreement and the PC to ensure compliance with its standards and applicable laws.

For a prospective Degree Wellness franchisee, this means that securing and maintaining a relationship with a qualified PC is crucial for the entire duration of the franchise term. The franchisee must obtain Degree Wellness's written approval of the Management Agreement before signing it with the PC. While Degree Wellness may offer assistance in preparing the agreement, the franchisee bears the ultimate responsibility for ensuring its compliance with all relevant laws and regulations in the state where the studio is located.

This arrangement is particularly relevant in states where non-licensed individuals or entities are restricted from owning or operating healthcare practices. Even in states where such restrictions do not exist, Degree Wellness may still require a Studio Management Business model under certain circumstances. Therefore, understanding the legal landscape and the specific requirements for PC relationships is essential for anyone considering a Degree Wellness franchise.