What proof is required from a Degree Wellness franchisee regarding licenses to perform services?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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. A "PC" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide health care services under local and state laws. In such an arrangement:
i) You, as franchisee, will construct or build-out the Studio for use by the PC.
ii) The Studio business will be operated by the PC using the Degree Wellness name and Marks.
iii) In addition to signing the Franchise Agreement with us, before you begin operating the Studio Management Business, you must enter into a management agreement ("Management Agreement") with the PC. If permitted by state and local law, the PC may be the same entity as your franchisee entity or have the same owners. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's health care business and its delivery of health care services and related services and products to patients at a Studio, consistent with all applicable laws and regulations. Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules and regulations of the state in which the Studio will be located.
iv) You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in
compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
v) We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
vi) The PC will employ and control the personnel who will provide the health related services required to be delivered at and through the Studio.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee operates a Studio Management Business, they must have a Management Agreement with a "PC" (professional corporation) that is authorized to provide healthcare services under local and state laws. Degree Wellness must approve the PC and its owners, but the franchisee is responsible for ensuring the PC complies with all applicable laws, rules, and regulations of the state in which the studio is located. The PC will employ and control the personnel who provide health-related services at the studio.
Degree Wellness requires the franchisee to provide management and administrative services to the PC, consistent with the Degree Wellness system, to support the PC's healthcare business. The Franchise Disclosure Document contains a general form of Management Agreement as an exhibit, which can serve as a starting point. However, the actual Management Agreement must be approved by Degree Wellness and satisfy all legal requirements of the state in which the studio is located. The franchisee must obtain written approval of the final Management Agreement before signing it with the PC.
Degree Wellness may make changes to the system that require the franchisee's general manager and employees to obtain additional licenses or certifications. The franchisee is responsible for modifying the operation of the franchise to comply with these changes and for all related costs. The franchisee must also establish any training programs for their employees and/or independent contractors that Degree Wellness prescribes in writing.
In summary, while Degree Wellness maintains some oversight, the franchisee bears the primary responsibility for ensuring that all licensing and operational requirements are met by the PC and its staff. This includes maintaining a compliant Management Agreement and adapting to any changes in regulations or Degree Wellness's system standards.