Are Degree Wellness franchisees, as laypersons, permitted to determine the medical equipment and supplies used in the medical services provided at the Studio?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
pment. There currently are no purchasing and distribution cooperatives.
Medical Purchases
The corporate practice of medicine doctrine restricts layperson-franchisees from determining the medical equipment and supplies to be used in the operation of the medical services provided in the Studio.
Effects of Compliance and Noncompliance
We do not provide any other benefits to you because of your use of designated or approved services and products, or suppliers.
Revenue We Derive From Franchisee Purchases
We do not currently derive revenue from Franchisee purchases but we reserve the right to in the future. As such for the year ending December 31, 2025, we received $0 from Franchisee purchases, which is 0% of our total revenue of $0. For the year ending December 31, 2025, our affiliate DW Financial
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, layperson-franchisees are restricted from determining the medical equipment and supplies used in the operation of medical services at the Studio. This restriction is due to the corporate practice of medicine doctrine. This means that as a Degree Wellness franchisee, if you are not a licensed medical professional, you will not have the authority to decide which medical equipment and supplies are used in the delivery of medical services at your franchise location.
This restriction is significant because it ensures that medical decisions are made by qualified professionals, maintaining a standard of care and compliance with medical regulations. Degree Wellness aims to uphold medical standards by preventing non-medical personnel from making critical decisions about medical equipment and supplies. This is a common practice in healthcare-related franchises to ensure patient safety and regulatory compliance.
For a prospective Degree Wellness franchisee, this means you must rely on approved suppliers and follow the guidelines set by the franchisor regarding medical equipment and supplies. If you, or one of your owners, cannot legally provide services to your Franchised Business then you must contract with Degree Wellness's designated supplier to provide medical director services. While this limits your autonomy in selecting these items, it also reduces the risk of non-compliance and ensures that the medical services provided meet the required standards. It is important to understand these restrictions and how they align with your business goals and operational preferences before investing in a Degree Wellness franchise.