What is the role of the Licensed Provider in relation to IV therapy at a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
To operate a Studio Management Business, you must enter into a Franchise Agreement with us and a Management Agreement with a "Licensed Provider" that will own and operate the Studio. A general form of a Management Agreement, to serve as a starting point for satisfying this requirement is attached as Exhibit F-1, 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 Management Business will be located. Attached as Exhibits F-2 and F-3, are forms of agreement required if you utilize our preferred licensed provider. A "Licensed Provider" will be one or more licensed individuals, or a professional corporation or similar entity, such as a professional limited liability company, that is duly authorized to provide health care services under local and state laws. Pursuant to the Management Agreement a Licensed Provider will provide a good faith exam. The initial good faith exam will establish the patient/physician relationship and create a plan of care as it relates to the IV therapy. Then the IV is administered by a registered nurse that is supervised by the physician. The individual franchisees will provide nursing staff to the professional corporation through a staffing agreement where the physician provides supervision to the nursing staff and the franchisee handles all payroll services for the nurse. Also, pursuant to the Management Agreement franchise will provide payroll services, accounting and tax filing services, and other administrative services as the professional corporation directs. The professional corporation will collect all funds for medical services.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Licensed Provider plays a crucial role in the operation of a Studio Management Business, particularly concerning IV therapy. To operate a Studio Management Business, a franchisee must enter into a Franchise Agreement with Degree Wellness and a Management Agreement with a Licensed Provider who will own and operate the studio. The franchisor must approve the Management Agreement, ensuring it complies with all applicable local and state laws. Degree Wellness also provides forms of agreement if the franchisee utilizes their preferred licensed provider.
The Licensed Provider must be one or more licensed individuals or a professional corporation authorized to provide healthcare services under local and state laws. Specifically, regarding IV therapy, the Licensed Provider conducts a good faith exam to establish a patient/physician relationship and create a plan of care. Following this, a registered nurse, supervised by the physician, administers the IV. The franchisee provides the nursing staff to the professional corporation through a staffing agreement, where the physician supervises the nursing staff, and the franchisee handles payroll services for the nurse.
Furthermore, the Degree Wellness franchisee provides payroll, accounting, tax filing, and other administrative services as directed by the professional corporation. The professional corporation, in turn, collects all funds for medical services. This structure ensures that while the franchisee manages the business aspects, the medical services, such as IV therapy, are overseen by qualified and licensed healthcare professionals, maintaining compliance with healthcare regulations and standards.