Who is responsible for performing bookkeeping and accounting for the Degree Wellness Studio operations?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Management Company is responsible for performing all bookkeeping and accounting for both the Studio Management Business and the Studio operations. This includes maintaining records, preparing required financial reports, billing and collection of expenses, and preparing and filing all federal, state, and local sales, payroll, and business tax returns for the Studio Management Business and the Studio/Licensed Provider. However, the Licensed Provider remains responsible for their own fees pursuant to Section 3.1(e).

This means that as a Degree Wellness franchisee (Management Company), you will handle the financial record-keeping and tax-related tasks for the entire studio operation, including the Licensed Provider's business activities. This is a significant responsibility, requiring you to maintain accurate records and comply with all relevant tax regulations.

However, the Licensed Provider is still responsible for their own fees. This division of responsibility means the franchisee needs to have a clear understanding of which financial obligations they are managing and which remain with the Licensed Provider to avoid confusion or errors in financial reporting and tax filings. Prospective franchisees should ensure they have the necessary expertise or resources to handle these bookkeeping and accounting tasks effectively.