What does 'Management Company Services' for Degree Wellness specifically include, excluding Studio Services?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 For purposes of this Agreement, the phrase "Management Company Services" specifically includes the following, except to the extent any of the foregoing would constitute Studio Services (as defined in Section 3.1 below): [Subject to change in order to comply with applicable law]
(a) Acquiring the site for Management Company and Licensed Provider to provide their respective services for the operation of the Studio under this Agreement (the "Premises").
The Premises shall comply in all respects with Degree Wellness's System requirements.
Management Company shall perform all tenant responsibilities under the lease agreement for the Premises (or similar responsibilities if Management Company owns the Premises), including, but not limited to, paying rent, acquiring and maintaining connections to utilities, phone and internet services, and performing, or causing to be performed, maintenance, repair, replacement, and janitorial services;
(b) Acquiring all fixtures, equipment, and furnishings necessary for the operation of a Degree Wellness Studio Management Business and the operation of the Studio, and maintaining, repairing, and replacing such fixtures, equipment, and furnishings;
(c) Developing and implementing a business plan for the Studio and managing the operational workflow of the Studio business, specifically, scheduling patient appointments and responding to patient inquiries, determining fees charged for the provision of supplies and devices to patients, assisting the Licensed Provider in the billing and the collection of fees payable for Licensed Provider's provision of the Studio Services, devices, and supplies to patients pursuant to Section 3.1(c), arranging for participation in discount medical plan organizations, including collection of fees from third-party payors, and maintaining patient records, including the confidentiality thereof, under the direction of Licensed Provider, pursuant to Section 3.1(d) below;
(d) Providing office management for the Studio, including purchasing supplies (including office, health and wellness supplies), computer and peripherals, practice management software, off-the-shelf software, general secretarial services, answering telephones and responding to emails and facsimiles, and procuring uniforms;
(e) Hiring, training, scheduling, supervising and managing all administrative and office staff of the Studio Management Business and the Studio, as applicable, and ensuring that the Studio Management Business and Studio business are sufficiently and adequately staffed; provided, however, that Licensed Provider, and not Management Company, shall be solely responsible for assigning and supervising staff for purposes of providing the Studio Services;
(f) Administering payroll and all insurance and fringe benefit plans of Licensed Provider and any employees of Licensed Provider;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, 'Management Company Services' encompass a range of administrative and operational tasks, specifically excluding any services that would be considered 'Studio Services.' These responsibilities are designed to support the Licensed Provider in running the Degree Wellness studio.
The services include acquiring a suitable site for the studio, ensuring it meets Degree Wellness's system requirements, and fulfilling all tenant responsibilities, such as paying rent and maintaining utilities. The Management Company is also responsible for acquiring, maintaining, and repairing all necessary fixtures, equipment, and furnishings for the studio's operation. Furthermore, they develop and implement a business plan, manage the studio's operational workflow (scheduling appointments, responding to inquiries), determine fees for supplies and devices, assist with billing and collections, arrange participation in discount medical plans, and maintain patient records under the Licensed Provider's direction.
In addition to these core functions, the Management Company provides office management, including purchasing supplies, managing computer systems and software, offering secretarial services, handling communications, and procuring uniforms. They also handle the hiring, training, scheduling, supervising, and managing of administrative and office staff, ensuring adequate staffing levels. However, it's important to note that the Licensed Provider retains sole responsibility for assigning and supervising staff involved in providing the actual 'Studio Services'.
Finally, the Management Company administers payroll and all insurance and fringe benefit plans for both the Licensed Provider and their employees. This comprehensive suite of services aims to streamline the administrative and operational aspects of the Degree Wellness studio, allowing the Licensed Provider to focus on delivering health and wellness services. Prospective franchisees should carefully review Section 3.1 of the agreement to fully understand the distinction between 'Management Company Services' and 'Studio Services'.