Who is responsible for billing and collecting fees charged by the Degree Wellness Licensed Provider?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) Billing and collecting fees charged by Licensed Provider for the Studio Services, or for other goods or services sold at or through the Studio, in compliance with all laws and regulations and all requirements under third party payor contracts and requirements, depositing payments made by patients and third party payors to the Studio into a bank account meeting Management Company's requirements (the "Licensed Provider Account");
(h) Performing all bookkeeping and accounting for the Studio Management Business and the Studio operations, including maintaining records, preparing any required financial reports, billing and collection of expenses, preparing and filing all federal, state, and local sales, payroll,
and business tax returns of the Studio Management Business and Studio/Licensed Provider, except such fees which shall remain the responsibility of Licensed Provider pursuant to Section 3.1(e);
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 Management Company is responsible for billing and collecting fees charged by the Licensed Provider for Studio Services or other goods and services sold at or through the studio. This includes compliance with all laws, regulations, and third-party payor contracts. The Management Company is also responsible for depositing payments made by patients and third-party payors into a bank account that meets the Management Company's requirements, referred to as the "Licensed Provider Account."
This arrangement means that Degree Wellness franchisees, acting as the Management Company, handle the financial transactions related to the services provided by the Licensed Provider. This includes invoicing, payment collection, and managing the Licensed Provider Account. The Management Company must adhere to legal and contractual requirements when handling these financial tasks.
However, the Licensed Provider retains responsibility for certain fees. The Management Company also performs bookkeeping and accounting for the Studio Management Business and the Studio operations, including maintaining records, preparing financial reports, and filing tax returns, except for fees that remain the responsibility of the Licensed Provider. This division of responsibilities ensures that while the Management Company handles the billing and collection, the Licensed Provider remains accountable for specific fees as defined in their agreement.
Prospective Degree Wellness franchisees should carefully review the agreement to understand the specific fees for which the Licensed Provider is responsible and ensure they are comfortable with the Management Company's role in handling the billing and collection processes. Understanding these financial responsibilities is crucial for the successful operation of a Degree Wellness studio.