Is a Degree Wellness franchisee required to cooperate with inspections, observations, and interviews conducted by Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
13. INSPECTIONS AND AUDITS.
- 13.1 Our Right to Inspect the Franchise. To determine whether you and the Franchise are complying with this Agreement and the specifications, programs, standards, and operating procedures we prescribe for the operation of the Franchise, we or our agents, such as a "mystery shopper" service, have the right, at any reasonable time and without advance notice to you, to: (1) inspect the Premises; (2) observe the operations of the Franchise for such consecutive or intermittent periods as we deem necessary; (3) interview personnel of the Franchise; (4) interview customers of the Franchise; and (5) inspect and copy any books, referral sources, marketing and advertising, records and documents relating to the operation of the Franchise, including, without limitation, those required to be maintained and/or furnished under Section 12 above. You agree that we or our agents may record telephone calls placed to your Franchised Business. You agree to fully cooperate with us in connection with any of those inspections, observations and interviews and must promptly correct any deficiencies in the operation of your Franchise of which we advise you. You agree to present to your customers any evaluation forms we periodically prescribe, and agree to participate in, and/or request that your customers participate in, any surveys performed by or on our behalf. During any inspection of the Premises and/or the Franchise as contemplated under this Paragraph 13.1, we will comply with all laws and regulations applicable to us relating to any personal health information of your patients, as set forth in the business associate agreement that you must sign with us.
- 13.2 Our Right to Audit. We have the right at any time during business hours, and without advance notice to you, to inspect and audit, or cause to be inspected and audited, the business records, bookkeeping and accounting records, sales and income tax records and returns and other records of the Franchise, and the books and records of any corporation, limited liability company, or partnership that holds the Franchise. You agree to fully cooperate with our representatives, agents, and any independent accountants we may hire to conduct any inspection or audit, and to pay upon demand any underpayment found to have occurred, plus interest at the past due payment rate set forth earlier in this Agreement. You agree to supply us or our representatives with true, accurate and complete copies of requested documents
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are required to cooperate with inspections, observations, and interviews conducted by Degree Wellness. Specifically, Degree Wellness or its agents have the right to inspect the premises, observe operations, interview personnel and customers, and inspect records at any reasonable time without advance notice.
Degree Wellness outlines that franchisees must fully cooperate with these inspections, observations, and interviews. Franchisees are also obligated to promptly correct any operational deficiencies that Degree Wellness identifies. This extends to presenting evaluation forms to customers and participating in surveys conducted by or on behalf of Degree Wellness.
Degree Wellness also retains the right to audit the franchisee's business records, bookkeeping, accounting records, and tax records without advance notice. Franchisees must fully cooperate with Degree Wellness's representatives, agents, and any independent accountants hired to conduct these audits. Franchisees are responsible for paying any underpayment discovered during the audit, along with interest.