If the Secretary undertakes an investigation of the Covered Entity, does Degree Wellness require its franchisees (Business Associates) to cooperate?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (l) Secretary's Right to Audit.
Business Associate agrees to keep records, submit compliance reports, and make its internal practices, books, and records relating to the use and disclosure of PHI received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity, available to the Secretary for purposes of the Secretary determining Covered Entity's and/or Business Associate's compliance with HIPAA, the HIPAA Regulations and the HITECH Act.
Business Associate agrees to cooperate with the Secretary if the Secretary undertakes an investigation or compliance review of Covered Entity.
Business Associate shall permit the Secretary access to its facilities, books, records, accounts, and other sources of information, including PHI, during normal business hours.
No attorney-client, or other legal privilege will be deemed to have been waived by Business Associate by virtue of this provision of the Agreement.
Business Associate shall provide to Covered Entity a copy of any PHI that Business Associate provides to the Secretary concurrently with providing such PHI to the Secretary.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees operating as Business Associates are required to cooperate with the Secretary of Health and Human Services if an investigation or compliance review of the Covered Entity (Wellness Provider Therapies, P.A.) is undertaken. This requirement is part of the Business Associate Agreement that franchisees must enter into.
Specifically, the agreement states that the Business Associate (the franchisee) must allow the Secretary access to its facilities, books, records, accounts, and other sources of information, including Protected Health Information (PHI), during normal business hours. This access is granted to allow the Secretary to determine compliance with HIPAA, the HIPAA Regulations, and the HITECH Act by both the Covered Entity and the Business Associate.
Furthermore, the agreement clarifies that no attorney-client or other legal privilege is waived by the Business Associate due to this cooperation requirement. The Business Associate must also provide the Covered Entity with a copy of any PHI provided to the Secretary at the same time it is provided to the Secretary. This ensures transparency and allows the Covered Entity to stay informed about the information being shared during the investigation.