If operating a Degree Wellness Studio Management Business, what agreements must the franchisee enter into?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
As further described below, to operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Studio. A "PC" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide health care services under local and state laws. In such an arrangement:
i) You, as franchisee, will construct or build-out the Studio for use by the PC.
ii) The Studio business will be operated by the PC using the Degree Wellness name and Marks.
iii) In addition to signing the Franchise Agreement with us, before you begin operating the Studio Management Business, you must enter into a management agreement ("Management Agreement") with the PC. If permitted by state and local law, the PC may be the same entity as your franchisee entity or have the same owners. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's health care business and its delivery of health care services and related services and products to patients at a Studio, consistent with all applicable laws and regulations. Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules and regulations of the state in which the Studio will be located.
iv) You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in
compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
v) We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
vi) The PC will employ and control the personnel who will provide the health related services required to be delivered at and through the Studio.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee operating a Studio Management Business must enter into two key agreements. First, they must sign a Franchise Agreement with Degree Wellness itself, which grants them the right to operate the business under the Degree Wellness system. Second, the franchisee must enter into a Management Agreement with a "PC" (Professional Corporation) that will own and operate the studio.
The "PC" must be comprised of licensed individuals or a professional entity authorized to provide healthcare services under local and state laws. The franchisee's role is to construct or build out the studio for the PC's use and to provide management and administrative services to support the PC's healthcare business. The Management Agreement must be approved by Degree Wellness and comply with all applicable laws and regulations in the state where the studio is located.
Degree Wellness provides a general form of Management Agreement as an exhibit in its Franchise Disclosure Document, which can be used as a starting point. However, the final agreement must be approved by Degree Wellness. The franchisee is responsible for ensuring the Management Agreement complies with all applicable laws and regulations. The franchisee must maintain a Management Agreement with a PC at all times during the operation of the franchised business and the initial term of the Franchise Agreement. Degree Wellness must also approve the PC and its owners, but the franchisee is responsible for ensuring the PC complies with all applicable laws and regulations of the state in which the studio is located.