Does Degree Wellness require franchisees to provide training to Providers regarding administrative policies and procedures related to the Business's operation?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. You must establish any training programs for your employees and/or independent contractors that we may prescribe in writing from time to time. You are required to enroll in and maintain the human resources and payroll services provided by the vendor we designate for such services, including the payment of any fees and execution of any agreement required by such vendor. The required services consist of payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Degree Wellness franchisees operate a Studio Management Business by entering into a Management Agreement with a PC (Professional Corporation) that owns and operates the studio. The franchisee provides the PC with management and administrative services and support. The PC, in turn, employs and controls the personnel who provide health-related services at the studio.
The FDD states that the franchisee must establish any training programs for their employees and/or independent contractors that Degree Wellness may prescribe in writing from time to time. The franchisee is required to enroll in and maintain human resources and payroll services provided by a vendor designated by Degree Wellness.
However, the FDD does not explicitly state whether Degree Wellness requires franchisees to provide specific training to the PC or its employees (the providers) regarding administrative policies and procedures related to the business's operation. While the franchisee manages the administrative aspects, the healthcare professionals are employed and controlled by the PC. Therefore, it is unclear from the provided excerpts whether the franchisee's training responsibilities extend to the PC's staff.
A prospective Degree Wellness franchisee should clarify with the franchisor during their due diligence whether there are any expectations or requirements to provide training to the PC's employees or contractors, specifically regarding administrative policies and procedures.