Does Degree Wellness maintain HIPAA standards?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Although a Studio is not a "covered entity" for purposes of HIPPA, you must comply with any and all federal, state and/or local privacy laws pertaining to your care recipients, including HIPAA and the HI-TECH Act and related laws, rules and regulations. We maintain HIPPA standards although we are not required to. In all cases, you must also comply with laws that apply generally to all businesses. You should investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to your franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.
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, while a Degree Wellness studio is not considered a "covered entity" under HIPAA, franchisees must still comply with all applicable federal, state, and local privacy laws, including HIPAA, the HI-TECH Act, and related regulations. Degree Wellness states that it maintains HIPAA standards even though it is not required to do so. Franchisees are also obligated to adhere to all laws generally applicable to businesses.
This means that even though Degree Wellness studios may not technically fall under HIPAA regulations, franchisees must still take necessary steps to protect the privacy of their clients' health information. This includes understanding and implementing policies and procedures to ensure compliance with privacy laws.
The FDD advises prospective franchisees to investigate these laws and consult with a legal advisor to determine which requirements apply to their specific Degree Wellness franchise. Failure to comply with these laws and regulations can result in significant civil or criminal penalties for both individuals and the business entity. Therefore, it is crucial for franchisees to prioritize privacy and security in their operations.