What is the Degree Wellness franchisee's obligation regarding the service provided at the Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
to maintain a neat and clean appearance and conform to the standards of dress that we specify in the Operations Manual, as updated from time to time.
- g. Each of your employees and independent contractors must sign a written agreement, in a form approved by us, to maintain confidential our Confidential Information, proprietary information, and trade secrets as described in Paragraph 9.1. You must forward to us a copy of each such signed agreement.
- h. All of your employees and independent contractors must render prompt, efficient and courteous service to all customers of the Franchise.
- i. You agree not to recruit or hire, either directly or indirectly, any employee (or a former employee, for six (6) months after his or her employment has ended) of any Degree Wellness Studio operated by us, our affiliates, or another Degree Wellnessfranchise owner without first obtaining the written consent of us, our affiliate, or the franchise owner that currently employs (or previously employed) such employee. (If you violate this provision, in addition to any other right or remedy we may have, you agree to pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation. This amount is set at twice the employee's annual salary because it is a reasonable estimation of the damages that would occur from such a breach, and it will almost certainly be impossible to calculate precisely the actual damages from such a breach.)
10.8 Insurance
a. Before you open the Franchise and during any Term of this Agreement, you must maintain in force, under policies of insurance issued by carriers in good standing in the state where your Studio is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Franchise or otherwise in conjunction with your conduct of the Franchise business pursuant to this Agreement, under one or more policies of insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate;
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are obligated to ensure that all employees and independent contractors provide prompt, efficient, and courteous service to all customers. This requirement underscores the importance Degree Wellness places on customer satisfaction and service quality within its franchise system.
To meet this obligation, Degree Wellness franchisees must establish any training programs prescribed by the franchisor in writing for their employees and/or independent contractors. Franchisees are also required to enroll in and maintain human resources and payroll services from a designated vendor, covering payroll processing, tax filing, HR solutions, benefits administration, and employee onboarding. This ensures that franchisees have the necessary support and resources to manage their staff effectively and in compliance with Degree Wellness standards.
Furthermore, franchisees must ensure that all employees and independent contractors maintain a neat and clean appearance and adhere to the dress standards specified in the Operations Manual. They must also have each employee and independent contractor sign a written agreement to protect Degree Wellness's confidential information, proprietary information, and trade secrets. These measures are designed to maintain a consistent brand image and protect the franchisor's intellectual property.
Degree Wellness also restricts franchisees from recruiting or hiring employees from other Degree Wellness locations without written consent. Violating this provision can result in a penalty of twice the employee's annual salary, plus all associated costs and attorneys' fees. This policy aims to prevent the disruption of staffing at existing Degree Wellness studios and protect the investment made in training and developing employees across the franchise system.