Is Degree Wellness responsible for defects or deficiencies in the computer system used by franchisees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. We are not responsible or liable for any actual, alleged, or perceived defects or deficiencies in the Computer System, any components thereof, Service Provider(s), or any required third-party software, or the performance of any of the forgoing.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness is not responsible or liable for any defects or deficiencies in the computer system franchisees are required to use. Specifically, this includes any components of the system, service providers, or required third-party software, as well as the performance of any of the aforementioned elements.
This means that if the computer system, software, or related services have issues, the franchisee bears the risk. Degree Wellness mandates the use of a specific computer system and software, including a designated billing system, as a crucial part of the studio's startup and operation. Franchisees are also required to maintain a dedicated high-speed internet service for remote access and information retrieval by Degree Wellness.
Furthermore, if a Degree Wellness franchisee does not fully implement the designated computer system, including the required software, within acceptable timeframes, they will be required to pay additional fees. These fees can amount to $500 per month if the franchisee has not "gone live" within two months after the conclusion of their initial training program, and increase to $1,000 per month commencing within the sixth month after the conclusion of the initial training program. This highlights the importance of adhering to Degree Wellness's technology requirements and the potential financial implications of failing to do so.
Prospective franchisees should carefully consider the implications of this lack of responsibility and the potential costs associated with computer system issues. It would be prudent to inquire about the typical issues encountered, the support available to address these issues, and the expected costs for maintenance and repairs of the computer system. Understanding these aspects can help a franchisee better prepare for and manage the technological requirements of operating a Degree Wellness franchise.