If a Degree Wellness franchisee is not licensed in Illinois, are they required to negotiate a management agreement with licensed professionals?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Illinois prohibits the corporate practice of medicine. Unlicensed individuals and entitles aer prohibited from owning, operating and maintaining an establishment for the study, diagnosis and treatment of human ailments and injuries, whether physical or mental. See Medical Corporation Act, 805 ILCS 15/2, 5 (West 2018).
If you are NOT licensed certified in Illinois to provide services of the nature described in this disclosure document, you must negotiate the terms of a management Agreement with license professionals who will provide the services that this franchised business offers. Retain an experienced attorney who will look out for your best interests in this business venture.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee is not licensed or certified in Illinois to provide the services described in the document, they must negotiate a management agreement with licensed professionals. These professionals will then provide the services that the Degree Wellness franchised business offers. The FDD emphasizes the importance of retaining an experienced attorney to protect the franchisee's interests in this business venture. This requirement is due to Illinois law prohibiting the corporate practice of medicine, which prevents unlicensed individuals or entities from owning or operating establishments that provide medical diagnosis and treatment.
This requirement has significant implications for prospective Degree Wellness franchisees in Illinois who do not have the necessary licenses. They will need to find and negotiate terms with qualified, licensed professionals to manage the service aspects of their business. This will add complexity and cost to the business operation, as the franchisee will need to budget for the compensation and oversight of these licensed professionals. The franchisee should carefully consider the costs and responsibilities associated with this management agreement, including legal fees and ongoing management expenses.
Degree Wellness also states that the franchisee must have a Management Agreement in effect with a PC (professional corporation) at all times during the operation of the Franchised Business and the Initial Term of this Agreement. The franchisor must approve the PC and its owners, but the franchisee is responsible for ensuring that the PC complies with all applicable laws, rules, and regulations of the state in which the Studio is located. The PC will employ and control the personnel who will provide the health-related services required to be delivered at and through the Studio.
In summary, for a Degree Wellness franchise in Illinois, if the franchisee lacks the required licenses, securing a compliant management agreement with licensed professionals is not merely an option but a mandatory condition for operating the franchise legally. This agreement must adhere to state laws and be approved by Degree Wellness, placing additional responsibilities on the franchisee to ensure compliance and manage relationships with the involved parties.