If I employ a general manager for my Degree Wellness franchise, what is their primary responsibility?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ise must operate at a site we approve and according to our standards, specifications, operating procedures, and rules (the "System Standards"). Unless we approve your employment of an on-site general manager to operate your Degree Wellness franchise, you (if you are an individual) or one of your principal owners, officers, directors, or employees approved by us (if you are a legal entity) must actively participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager, then the general manager will supervise the dayto-day operation of your franchise. Each general manager and successor general manager must attend and complete our initial training program for your franchise prior to commencing the role of General Manager (see Item 11). We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the healthcare profession may require a licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed professional. You are responsible for complying with these state laws and regulations.
Obligations of Owners
You (if an individual) or each of your owners (if you are a legal entity) must sign an Assumption and Guarantee of Obligations (attached to the Franchise Agreement as Exhibit 3), agreeing to be bound by and guaranteeing your obligations as the "franchisee" under your Franchise Agreement. If you and/or your owners transfer your Franchise Agreement or any related interest, then you and/or the owners making the assignment must agree to be bound by the terms of the Agreement, and guarantee the obligations of the "franchisee" under the Agreement. As a
condition of our consent to allow you to transfer your franchise to a third party, we may require you to guarantee the performance of a third party. You and your owners must at all times faithfully, honestly and diligently perform your and their obligations under the Franchise Agreement. You and they must promote and enhance your franchise. Neither you nor your owners can engage in any other business or activity that may conflict with your or their obligations under your Franchise Agreement. If you are an unlicensed franchisee, your oversight responsibilities in managing the business are separate and distinct from those services provided by the professional corporation.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 48–49)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if you, as a franchisee, are approved to employ a general manager, that general manager will supervise the day-to-day operations of your franchise. The FDD specifies that the General Manager must have primary day-to-day responsibility for the Franchise's operations. They must also devote their full time, best efforts, and constant personal attention to the Franchise's operations. The general manager must have full authority from the franchisee to implement the Degree Wellness System at the franchise location.
Degree Wellness requires that each general manager and any successor general managers attend and complete the initial training program for the franchise before they can begin their role. The franchisor must provide written approval of the general manager's qualifications before they are hired. The general manager cannot have any conflicting interests, such as an interest in or business relationship with any business competitor of the Degree Wellness franchise.
The General Manager must sign a written agreement to maintain the confidentiality of proprietary information, abide by non-solicitation and non-disparagement covenants, and adhere to the covenants not to compete. If Degree Wellness determines that the general manager is not qualified during or after the initial training program, they have the right to require the franchisee to choose a new individual for the position, subject to Degree Wellness's approval.
Prospective franchisees should note that employing a general manager is not mandatory unless the franchisee is not an individual or does not wish to be involved in the daily operations. However, if a general manager is employed, they become the key figure responsible for ensuring the franchise adheres to the Degree Wellness system and operates efficiently on a daily basis.