Is Degree Wellness liable for any taxes levied against the franchisee or their assets in connection with the Degree Wellness business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. You acknowledge that you are the sole and independent owner of your Franchised Business, you are and will be in full control thereof, and you will conduct the business solely in accordance with your own judgment and discretion, subject only to the provisions of this Agreement. As indicated in Section 8.1, you must conspicuously identify yourself, internally and to third parties, as the independent owner of the Franchised Business and as a franchisee of Degree Wellness, and neither you nor any of your employees should represent to any third parties that you are employees or agents of Degree Wellness. You agree that as between you and us, you are solely responsible for the effects, outcomes and consequences of your acts and omissions and the acts and omissions of your employees, representatives and agents in connection with or relating to the operation of your Franchised Business.
- b. We will not assume any liability or be deemed liable for any agreements, representations, or warranties you make that are not expressly authorized under this Agreement, nor will we be obligated for any damages to any person or property directly or indirectly arising out
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is responsible for the operation of their franchised business. Degree Wellness will not assume liability for any damages that arise from the operation of the franchisee's business. The franchisee is responsible for the effects, outcomes, and consequences of their actions or omissions, or those of their employees or agents.
Degree Wellness requires franchisees to identify themselves as the independent owner of their franchise. Franchisees must also ensure that neither they nor their employees represent themselves as employees or agents of Degree Wellness. This reinforces the separation between the franchisor and franchisee, clarifying that the franchisee is an independent entity responsible for their own business operations.
Franchisees are required to use a vendor designated by Degree Wellness for human resources and payroll services, including payroll tax filing. This suggests that while franchisees handle payroll and related taxes, they must do so through a specific vendor chosen by Degree Wellness. However, the document does not explicitly state whether Degree Wellness assumes any tax liabilities of the franchisee. Prospective franchisees should clarify with Degree Wellness the extent of their responsibility regarding taxes and any potential liabilities.