Who operates the Studio business using the Degree Wellness name and Marks?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
operate businesses performing health care related services, a Studio Management Business may be offered. In states that do permit non-licensed persons to own and operate health care businesses, a Studio Management Business Franchise is not necessary, but may be offered by us under certain circumstances.
As further described below, to operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "PC" that will own and operate the Studio.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the operation of a Degree Wellness Studio using the Degree Wellness name and Marks is handled by a 'PC' (Professional Corporation). This PC consists of licensed individuals or a professional corporation authorized to provide healthcare services under local and state laws.
To clarify, the franchisee constructs or builds out the studio, but the PC operates the business using the Degree Wellness name and Marks. The franchisee and the PC must enter into a Management Agreement, where the franchisee provides management and administrative services to support the PC's healthcare business. This agreement must be approved by Degree Wellness and comply with all applicable laws.
Degree Wellness must also approve the PC and its owners, but the franchisee is responsible for ensuring the PC's compliance with all relevant laws and regulations. The PC is in charge of employing and controlling the personnel who provide health-related services at the Studio. This arrangement is particularly relevant in states where non-licensed individuals or entities are not permitted to own and/or operate healthcare practices. In such cases, the 'Studio Management Business' model is implemented, requiring the franchisee to partner with a PC to legally operate the Degree Wellness Studio.