Are Placed Employees eligible for benefits offered by the Degree Wellness Group to its regular employees?

According to Degree Wellness's 2025 Franchise Disclosure Document, Placed Employees are not eligible to participate in any of the benefits or benefit plans offered by Degree Wellness Group to its regular employees. The FDD clarifies that the relationship between the Staffer (the entity providing the Placed Employees) and Degree Wellness Group is that of an independent contractor. This means that the Staffer, not Degree Wellness Group, is responsible for the employment terms and conditions of its employees.

Specifically, the Staffer retains the sole and exclusive right and obligation to handle hiring and firing, pre-employment screening, personnel records, employee hours, wages, benefits, supervision, performance management, and discipline. Degree Wellness Group's role is limited to clinical oversight of the work performed by registered nurses, ensuring that the clinical quality of work is maintained. This division of responsibilities ensures that the Staffer remains the sole employer of the Placed Employees.

This arrangement has significant implications for a prospective Degree Wellness franchisee. It means that the franchisee does not have to provide benefits to Placed Employees, reducing the franchisee's administrative burden and potential costs associated with employee benefits. However, it also means that the franchisee must ensure that the Staffer fulfills its obligations as the employer, including compliance with all applicable federal, state, and local laws related to employment. The franchisee should verify that the Staffer maintains adequate insurance, including workers' compensation, and properly handles all tax withholdings and payments for the Placed Employees.