What happens to any provision in the Degree Wellness agreement that may be interpreted as the Management Company's practice of medicine?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 Management Company shall not be permitted or required to engage in the Studio Services and/or any activities that constitute the practice of medicine, so long as applicable laws
and regulations prohibit the same. Any delegation of authority by Licensed Provider to Management Company that would permit or require Management Company to practice medicine or other Studio Services at the Premises shall be prohibited. Nothing in this Agreement shall be construed to permit the Management Company to control, influence, or otherwise affect Licensed Provider's rendering of the Studio Services and any provision of this Agreement which may be interpreted or deemed to constitute Management Company's practice of medicine shall be null, void, and of no force and effect, and such invalid or unenforceable provision will be reformed and construed by limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable law.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, any part of the agreement that could be seen as the Management Company practicing medicine will be considered invalid. Specifically, such a provision will be null, void, and without effect.
The agreement states that the problematic provision will be adjusted to the greatest extent possible under the law to make it valid and enforceable. This means Degree Wellness aims to maintain the agreement's overall intent while ensuring it does not violate laws regarding the practice of medicine.
This clause protects the licensed provider's autonomy and ensures that the Management Company does not overstep into medical practice, which it is not authorized to do. It also highlights Degree Wellness's awareness of, and intention to comply with, laws concerning the corporate practice of medicine and fee-splitting, ensuring that the licensed provider maintains exclusive control over medical decisions.