What representation and warranty does a Degree Wellness franchisee make regarding investigation of Professional Laws?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and
advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and restrictions on selfreferrals, medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations, advertisement of health care and related medical services, and patient privacy (the "Professional Laws"). You represent and warrant that you have independently investigated the Professional Laws applicable to the practice of medicine, health care and the operation of your Franchise in the Protected Territory, and that you have confirmed under the Professional Laws that you are permitted to manage and operate the Franchise in accordance with the System, specifically including providing all products and services to be offered by your Franchise and/or hiring health care providers and staff to provide all health care and related services to be offered by your Franchise. You acknowledge and agree that we are relying on your representations and warranties in granting the Franchise to you. You further agree and acknowledge that you must operate your Franchise in compliance with the Professional Laws during the Term of this Agreement and, in the event there are any changes to the Professional Laws (including any new Professional Laws) that would cause your operation of the Franchise to be in violation of the Professional Laws, you will immediately inform us of the change and your proposed method to comply with the Professional Laws, including entering into a Management Agreement, if necessary.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees make specific representations and warranties concerning their understanding of and compliance with laws related to healthcare practices. Franchisees acknowledge their sole responsibility for operating the franchise in compliance with all applicable laws, rules, and regulations pertaining to healthcare, referred to as "Professional Laws." These laws encompass a wide range of areas, including licensure, marketing and advertising, the use of medical equipment and devices, the sale or recommendation of dietary supplements, restrictions on fee splitting, anti-kickback prohibitions, regulations governing relationships between healthcare providers and suppliers, self-referral restrictions, medical benefit payment systems, advertising of healthcare and related medical services, and patient privacy.
Specifically, the franchisee represents and warrants that they have independently investigated the Professional Laws applicable to the practice of medicine, healthcare, and the operation of their Degree Wellness franchise within their protected territory. This investigation is meant to confirm that the franchisee is permitted to manage and operate the franchise in accordance with the Degree Wellness system. This includes providing all products and services offered by the franchise and/or hiring healthcare providers and staff to deliver healthcare and related services. Degree Wellness emphasizes that it is relying on these representations and warranties when granting the franchise.
The franchisee also agrees to operate the Degree Wellness franchise in compliance with Professional Laws throughout the term of the agreement. Furthermore, the franchisee is obligated to immediately inform Degree Wellness of any changes to Professional Laws, including new laws, that could cause the franchise's operation to violate these laws. In such cases, the franchisee must propose a method to comply with the updated laws, which may include entering into a Management Agreement if necessary. This places a significant responsibility on the franchisee to stay informed about and adapt to changes in the complex legal and regulatory landscape of healthcare.