Is it mandatory for a general manager of a Degree Wellness franchise to have an equity interest in the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete described in Items 17(q) and 17(r), as well as non-disparagement and non-solicitation covenants described in Items 17 (x) and 17(y). Some state laws and regulations affecting the healthcare profession may require a licensed professional to own or supervise your franchise or that you enter into a management agreement with a licensed professional. You are responsible for complying with these state laws and regulations.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 48–49)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, it is not mandatory for a general manager to have an equity interest in the franchise. The FDD states that Degree Wellness does not require the general manager to have an equity interest. However, the general manager cannot have any interest in or business relationship with any business competitor of the franchise.
Furthermore, the general manager must sign a written agreement to maintain the confidentiality of proprietary information, adhere to non-compete covenants, and comply with non-disparagement and non-solicitation covenants. The general manager must also attend and complete Degree Wellness's initial training program before commencing their role.
Prospective franchisees should note that while Degree Wellness does not mandate equity, some state laws and regulations affecting the healthcare profession may require a licensed professional to own or supervise the franchise, or that the franchisee enter into a management agreement with a licensed professional. It is the franchisee's responsibility to comply with these state laws and regulations.