What is a 'Licensed Provider' in the context of a Degree Wellness Studio Management Business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
To operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Studio. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit F-1, 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 Management Business will be located. Attached as Exhibits F-2 and F-3, are forms of agreement required if you utilize our preferred licensed provider. A "Licensed Provider" 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. Pursuant to the Management Agreement a Licensed Provider will provide a good faith exam. The initial good faith exam will establish the patient/physician relationship and create a plan of care as it relates to the IV therapy. Then the IV is administered by a registered nurse that is supervised by the physician. The individual franchisees will provide nursing staff to the professional corporation through a staffing agreement where the physician provides supervision to the nursing staff and the franchisee handles all payroll services for the nurse. Also, pursuant to the Management Agreement franchise will provide payroll services, accounting and tax filing services, and other administrative services as the professional corporation directs. The professional corporation will collect all funds for medical services.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a "Licensed Provider" is defined within the context of a Studio Management Business. This business model is relevant in states where laws prevent non-licensed individuals from owning or operating healthcare practices. In such cases, a franchisee can enter into a Management Agreement with a Licensed Provider to operate the Degree Wellness studio.
The Licensed Provider must be either one or more licensed individuals or a professional corporation (or similar entity like a professional limited liability company). This entity must be duly authorized to provide healthcare services under local and state laws. The Management Agreement, which must be approved by Degree Wellness, dictates the relationship between the franchisee (Studio Management Business) and the Licensed Provider.
The Licensed Provider's responsibilities include providing a good faith exam to establish a patient/physician relationship and creating a plan of care, particularly concerning IV therapy. A registered nurse, supervised by a physician, then administers the IV. The franchisee provides the nursing staff to the professional corporation through a staffing agreement, handling payroll services for the nurse while the physician provides supervision. The franchisee also provides payroll, accounting, tax filing, and other administrative services as directed by the professional corporation, which collects all funds for medical services.
For a prospective Degree Wellness franchisee, understanding the role and responsibilities of a Licensed Provider is crucial if they intend to operate a Studio Management Business. They must ensure that the Management Agreement complies with all applicable laws and regulations in their state and that they can secure a qualified Licensed Provider to fulfill the medical aspects of the business. The FDD includes general forms of Management Agreements as Exhibits F-1, F-2, and F-3, but the final agreement must be approved by Degree Wellness.