Who is responsible for obtaining and managing Degree Wellness' Licensed Provider's malpractice insurance?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Company is responsible for obtaining and managing the Licensed Provider's malpractice insurance. This includes paying the applicable premiums and deductibles. The Management Company is also responsible for obtaining and managing other necessary insurance coverages as outlined in Section 8 of the agreement.

This arrangement means that Degree Wellness franchisees, as Licensed Providers, will have their malpractice insurance handled by the Management Company. This service is part of the broader range of Management Company Services provided during the agreement term. The Management Company acts as the Licensed Provider's attorney-in-fact, with the authority to sign documents necessary to fulfill its duties, including managing insurance.

While the Management Company handles the procurement and management of malpractice insurance, the Licensed Provider is still expected to confirm that the advertising, promotions, and marketing programs comply with applicable laws, rules, and regulations. Additionally, the Licensed Provider must promptly inform the Management Company of any actions, suits, proceedings, or notices of violation that could adversely affect the Licensed Provider or the Studio's operations, financial condition, or reputation, including malpractice claims.