Who is responsible for the Licensed Provider's salary and fringe benefits at a Degree Wellness location?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Licensed Provider is responsible for their own salary and fringe benefits. Specifically, the Licensed Provider is responsible for paying their own salary and fringe benefits, as well as the studio's employees' salaries, wages, and fringe benefits if applicable. The Licensed Provider is also responsible for the studio's payroll taxes and other withholding items, in addition to their own and/or the studio's income taxes.

This arrangement means that the Degree Wellness franchisee (Management Company) does not directly pay the Licensed Provider's salary or benefits. Instead, the Licensed Provider is responsible for covering these costs from the revenue generated by their services at the studio. This is a common arrangement when the Licensed Provider is considered an independent contractor rather than an employee of the Management Company.

This setup has several implications. The Licensed Provider has control over their compensation and benefits, but also bears the responsibility of ensuring these are adequately funded. The Management Company is relieved of the direct financial burden of the Licensed Provider's compensation package, but must ensure that the financial arrangements are clearly defined in their agreements to avoid disputes. Prospective franchisees should carefully review these financial responsibilities and obligations with Degree Wellness to fully understand their financial obligations.