What is the legal structure of the Degree Wellness Franchisor?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Degree Wellness Franchise, LLC, or its affiliates, and their successors or assigns ("Franchisor") franchises the operation of a studio, (each "Degree Wellness Studio" or "Studio") featuring innovative self-care solutions that leverage heat, cold, light and advanced nutrients to enhance physical and mental health, and offers related products and merchandise under the name Degree Wellness and/or other trademarks, service marks, logos, and other indicia of origin prescribed by Franchisor (collectively, the "Proprietary Marks").
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to the 2025 FDD, Degree Wellness Franchise, LLC, is the franchisor for the Degree Wellness studio franchise. This indicates that the franchisor is a limited liability company (LLC).
As an LLC, Degree Wellness has a legal structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This means that the owners of the LLC, known as members, are typically not personally liable for the company's debts and obligations. Their liability is generally limited to the amount of their investment in the company. The profits and losses of the LLC are passed through to the members' individual income tax returns, avoiding double taxation at the corporate level.
For a prospective franchisee, understanding the franchisor's legal structure is important because it can provide insights into the stability and potential liability associated with the franchise system. Knowing that Degree Wellness is an LLC can offer some reassurance that the franchisee is dealing with a legally recognized entity that has certain protections in place. However, it is still crucial for franchisees to conduct thorough due diligence and seek legal advice to fully understand their rights and obligations under the franchise agreement.