What is the relationship between the Degree Wellness Group and the Staffer, according to the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
No Joint Employment Relationship. Staffer acknowledges and agrees that its relationship with Group is that of an independent contractor and nothing in this Agreement or related to Staffer's performance of any service shall be construed to create an employment or agency relationship between Group and Staffer or Group and any of Staffer's employees. Except in instances where the clinical quality of the work performed is in question, Staffer retains the sole and exclusive right and obligation to determine hiring and firing; conduct pre-employment screening and testing; maintain personnel records and files; track employee hours and pay wages and benefits; direct, control and supervise Staffer's employees; conduct performance management; impose discipline; and establish all other terms and conditions of employment of Staffer's employees. Staffer shall at all times remain the sole employer of persons employed by Staffer and, to this end, Staffer and Group agree that no act or omission of Staffer or Group shall be construed to make or render them joint employer, co-employer or alter ego of each other. Nothing in this Agreement shall be construed to create a partnership or joint venture relationship between the parties. Placed Employees provided to Group by Staffer shall not be eligible to participate in any of the benefits or benefit plans offered or provided by Group to regular employees on Group's payroll.
Indemnity as to Staffing. Staffer shall, to the fullest extent permitted by law, indemnify, defend and save harmless Group, its affiliates, and their respective managers, directors, officers, employees, insurers, and agents, (collectively, the "Indemnified Parties") from and against any and all claims, demands, actions, causes of action, damages, losses, fines, penalties and expenses (including reasonable attorneys' fees), which may be made or asserted against the Indemnified Parties, arising from or related to a Placed Employee and the services provided by Staffer pursuant to this Agreement, including, but not limited to, damage, bodily injury or the death of any person. Staffer also agrees to indemnify, defend and save harmless the Indemnified Parties from and against any liability arising out of or related to a breach of the terms of this Agreement, or any federal, state or local statute, law, ordinance or regulation.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the relationship between the Degree Wellness Group and the Staffer is defined as that of independent contractors. The agreement explicitly states that nothing within it should be construed to create an employment or agency relationship between the Group and the Staffer or any of the Staffer's employees. This means that the Staffer is not considered an employee, agent, partner, or joint venture of the Degree Wellness Group.
The Staffer retains sole authority over employment matters, including hiring, firing, screening, record maintenance, wage payments, supervision, performance management, and disciplinary actions for its employees. The Staffer is considered the exclusive employer of its personnel, and the agreement specifies that neither party's actions should lead to them being considered joint employers or alter egos of each other. The Staffer's employees are also not eligible for any benefits or benefit plans offered by the Group to its regular employees.
Furthermore, the Staffer is obligated to indemnify, defend, and hold harmless the Group and its affiliates from any claims, actions, damages, losses, fines, penalties, and expenses arising from the services provided by the Staffer's employees. This includes but is not limited to damages, bodily injury, or death. The Staffer also agrees to indemnify the Group against any liability resulting from a breach of the agreement or any relevant federal, state, or local laws and regulations. This underscores the independent nature of the relationship and the Staffer's responsibility for its own actions and those of its employees.