Who is responsible for the terms of employment and compensation for Degree Wellness employees and independent contractors?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
btedness or obligation of yours. Except as expressly authorized by this Agreement, neither you nor we will make any express or implied agreements, warranties, guarantees or representations, or incur any debt, in the name of or on behalf of the other, or represent that your and our relationship is other than that of franchisor and franchisee.
8.3 Responsibility for Acts and Omissions; Indemnification.
- a. You acknowledge that you are the sole and independent owner of your Franchised Business, you are and will be in full control thereof, and you will conduct the business solely in accordance with your own judgment and discretion, subject only to the provisions of this Agreement. As indicated in Section 8.1, you must conspicuously identify yourself, internally and to third parties, as the independent owner of the Franchised Business and as a franchisee of Degree Wellness, and neither you nor any of your employees should represent to any third parties that you are employees or agents of Degree Wellness. You agree that as between you and us, you are solely responsible for the effects, outcomes and consequences of your acts and omissions and the acts and omissions of your employees, representatives and agents in connection with or relating to the operation of your Franchised Business.
- **b.
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 responsible for the terms of employment and compensation of their employees and independent contractors. The FDD states that the franchisee is the sole and independent owner of their franchised business and will conduct the business according to their own judgment, subject to the agreement's provisions. The franchisee must identify themselves as the independent owner of the franchised business and a Degree Wellness franchisee. Neither the franchisee nor their employees should represent themselves as employees or agents of Degree Wellness. The franchisee is solely responsible for the effects, outcomes, and consequences of their actions and omissions, as well as those of their employees, representatives, and agents, in connection with the operation of their franchised business. Degree Wellness will not be liable for any agreements, representations, or warranties made by the franchisee that are not expressly authorized in the agreement. Degree Wellness is also not obligated for any damages arising from the operation of the franchisee's business.
Furthermore, the franchisee must establish any training programs for their employees and/or independent contractors as prescribed in writing by Degree Wellness. The franchisee is required to enroll in and maintain human resources and payroll services provided by a vendor designated by Degree Wellness, including paying any fees and executing any required agreements. These services include payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring, and employee onboarding. The franchisee must also ensure that all employees and independent contractors maintain a neat and clean appearance and conform to the dress standards specified in the Operations Manual.
Each employee and independent contractor must sign a written agreement, in a form approved by Degree Wellness, to maintain the confidentiality of Degree Wellness's confidential information, proprietary information, and trade secrets. The franchisee must forward a copy of each signed agreement to Degree Wellness. All employees and independent contractors must provide prompt, efficient, and courteous service to all customers of the franchise. The franchisee also agrees not to recruit or hire any employee (or former employee within six months of their employment ending) of any Degree Wellness studio operated by Degree Wellness, its affiliates, or another Degree Wellness franchise owner without written consent. Violating this provision requires the franchisee to pay the employee's current or former employer twice the employee's annual salary, plus all costs and attorneys' fees incurred as a result of the violation.