Who is responsible for ensuring the Degree Wellness Management Agreement complies with all applicable laws?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ibit that can serve as a starting point for satisfying this requirement, but the actual Management Agreement to be used must be approved by us, in our discretion, and must satisfy all requirements and limitations of applicable laws, rules and regulations of the state in which the Studio will be located.
- iv) You must obtain our written approval of the final Management Agreement prior to signing it with the PC.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is ultimately responsible for ensuring that the Management Agreement complies with all applicable laws, rules, and regulations of the state in which the studio is located. Degree Wellness may offer assistance in preparing the Management Agreement, but the final determination of compliance rests with the franchisee.
This means that while Degree Wellness provides a general form of the Management Agreement and may offer guidance, it is the franchisee's duty to ensure the agreement adheres to all state and local laws. This responsibility includes understanding and adhering to healthcare regulations specific to the studio's location. Degree Wellness must approve the final Management Agreement before it is signed with the PC (Professional Corporation).
This places a significant burden on the franchisee, who may need to seek legal counsel to ensure compliance. Failing to comply with these laws could result in legal issues, fines, or other penalties. Degree Wellness also requires the franchisee to ensure that the PC (Professional Corporation) is compliant with all applicable laws, rules, and regulations of the state in which the studio is located.
Therefore, prospective Degree Wellness franchisees should factor in the costs of legal review and ongoing compliance monitoring when evaluating this franchise opportunity. It is essential to fully understand the legal landscape of the state in which they plan to operate and to maintain a proactive approach to compliance.