What privacy laws must a Degree Wellness franchisee comply with?
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 adhere to all federal, state, and local privacy laws concerning their care recipients. This includes HIPAA, the HI-TECH Act, and any related laws, rules, and regulations. Degree Wellness maintains HIPAA standards even though they are not required to do so.
In addition to these specific healthcare-related privacy regulations, Degree Wellness franchisees must also comply with laws that generally apply to all businesses. These could include data protection laws, consumer privacy acts, and other regulations that govern how businesses collect, use, and store personal information.
The FDD emphasizes the importance of franchisees investigating these laws and consulting with a legal advisor to determine which requirements apply to their specific Degree Wellness franchise. Non-compliance with these laws and regulations can lead to significant civil or criminal penalties for both individuals and the business entity. Therefore, it is crucial for prospective franchisees to understand and adhere to all applicable privacy laws to avoid potential legal and financial repercussions.