What is the Degree Wellness franchisee's responsibility regarding compliance with laws related to the sale or recommendation of dietary supplements?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and
advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and restrictions on selfreferrals, medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations, advertisement of health care and related medical services, and patient privacy (the "Professional Laws"). You represent and warrant that you have independently investigated the Professional Laws applicable to the practice of medicine, health care and the operation of your Franchise in the Protected Territory, and that you have confirmed under the Professional Laws that you are permitted to manage and operate the Franchise in accordance with the System, specifically including providing all products and services to be offered by your Franchise and/or hiring health care providers and staff to provide all health care and related services to be offered by your Franchise. You acknowledge and agree that we are relying on your representations and warranties in granting the Franchise to you. You further agree and acknowledge that you must operate your Franchise in compliance with the Professional Laws during the Term of this Agreement and, in the event there are any changes to the Professional Laws (including any new Professional Laws) that would cause your operation of the Franchise to be in violation of the Professional Laws, you will immediately inform us of the change and your proposed method to comply with the Professional Laws, including entering into a Management Agreement, if necessary.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees bear the sole responsibility for operating their franchise in compliance with all applicable laws, rules, and regulations pertaining to the practice of health care. This includes, without limitation, laws concerning licensure, marketing and advertising, the use of medical equipment and devices, and the sale or recommendation of dietary supplements. It also encompasses fee splitting prohibitions or restrictions, anti-kickback prohibitions, regulations governing relationships between healthcare providers and suppliers, restrictions on self-referrals, medical benefit payment systems, advertising of healthcare services, and patient privacy. These are collectively referred to as the "Professional Laws."
Degree Wellness requires franchisees to independently investigate these Professional Laws applicable to their franchise's operation within their protected territory. Franchisees must confirm that they are permitted to manage and operate the franchise in accordance with the Degree Wellness system, specifically including offering all products and services and hiring healthcare providers and staff. Degree Wellness emphasizes that it relies on the franchisee's representations and warranties regarding their understanding and compliance with these laws when granting the franchise.
Furthermore, franchisees must continuously comply with Professional Laws throughout the term of the agreement. If any changes occur in these laws that would cause the franchise's operation to be in violation, the franchisee is obligated to immediately inform Degree Wellness of the change and propose a method to comply with the updated laws, which may include entering into a Management Agreement if necessary. This places a significant burden on the franchisee to stay informed and adapt to changes in healthcare regulations to maintain compliance and avoid potential legal issues.