What kind of registrations must a Degree Wellness franchisee obtain under applicable law?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
All references to "this Agreement," the "Operations Manual" or the "Standards" include all such mandatory specifications, programs, standards, and operating and management procedures. We will not, however, control or try to influence your or your
employee's exercise of professional and/or medical judgment, treatment protocols, employee decisions or relationships with patients.
10.6 Compliance with Laws and Good Business Practices.
- a. You agree to secure and maintain in force in your name all required licenses, permits and certificates relating to the operation of the Franchise. You also agree to operate the Franchise in full compliance with all applicable laws, ordinances, and regulations, including without limitation all government regulations relating to worker's compensation insurance, advertising, unemployment insurance, the practice of health care in your state, and withholding and payment of federal and state income taxes, social security taxes, and sales taxes.
- b. Under applicable federal law, including, without limitation, Executive Order 13224, signed on September 23, 2001 (the "Order"), you are prohibited from engaging in any transaction with any person engaged in, or with a person aiding any person engaged in, acts of terrorism as defined in the Order. Accordingly, you represent to us that you do not, and hereafter will not, engage in any acts of terrorism or terrorist activity.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees must secure and maintain all required licenses, permits, and certificates relating to the operation of the franchise in their name. This includes operating the franchise in full compliance with all applicable laws, ordinances, and regulations. These regulations specifically include government regulations related to worker's compensation insurance, advertising, unemployment insurance, the practice of health care in the franchisee's state, and the withholding and payment of federal and state income taxes, social security taxes, and sales taxes.
This means a prospective Degree Wellness franchisee needs to investigate all applicable federal, state, and local laws to ensure they obtain every required registration before opening their studio. The franchisee is solely responsible for understanding and adhering to these legal requirements. Failing to obtain the necessary licenses and permits can result in fines, penalties, or even the forced closure of the Degree Wellness studio.
Furthermore, the FDD notes that some states may require registration, filing, or exemption of a franchise under other laws, such as those regulating the offer and sale of business opportunities or seller-assisted marketing plans. This highlights the importance of consulting with legal and business advisors to ensure full compliance with all applicable regulations in the specific state where the Degree Wellness franchise will operate.
Degree Wellness also requires that the franchisee notify them in writing within 5 days of the commencement of any action, suit, or proceeding, and/or of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental unit, that may adversely affect the franchisee's and/or the Franchise's operation, financial condition, or reputation, including, without limitation, any and all claims of malpractice brought against you or any professional affiliated with you, regardless of the nature of the claim, anticipated outcome or remedies sought; and/or (2) your receipt or knowledge any notice of violation of any law, ordinance, or regulation relating to health or safety.