What is the scope of the Degree Wellness franchisee's responsibility for operating in compliance with healthcare laws?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Without limiting any other provisions in this Agreement, you acknowledge and agree that you have sole responsibility for operating your Franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care, including without limitation: licensure, marketing and
advertising, use of medical equipment and devices, the sale or recommendation of dietary supplements, fee splitting prohibitions or restrictions, anti-kickback prohibitions and other laws or regulations governing the relationships between health care service providers and suppliers with physicians and restrictions on selfreferrals, medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations, advertisement of health care and related medical services, and patient privacy (the "Professional Laws"). You represent and warrant that you have independently investigated the Professional Laws applic
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees bear the sole responsibility for operating their franchise in compliance with all applicable healthcare laws, rules, and regulations. This encompasses a wide array of areas including licensure, marketing and advertising, the use of medical equipment and devices, and the sale or recommendation of dietary supplements.
Furthermore, Degree Wellness franchisees must adhere to fee splitting prohibitions or restrictions, anti-kickback prohibitions, and other laws governing relationships between healthcare service providers and suppliers, including restrictions on self-referrals. Compliance extends to medical benefit payment systems, covering self-pay, private, and government insurance requirements and regulations. Franchisees are also responsible for adhering to regulations concerning the advertisement of healthcare and related medical services, as well as patient privacy laws.
Degree Wellness requires franchisees to independently investigate these Professional Laws and also mandates that franchisees notify Degree Wellness within 5 days of any action, suit, proceeding, order, writ, injunction, award, or decree that may adversely affect the franchise's operation, financial condition, or reputation. This includes any malpractice claims or notices of violation of health or safety laws. Franchisees must also secure and maintain all required licenses, permits, and certificates necessary for the franchise's operation and operate in compliance with all applicable laws, ordinances, and regulations, including those related to worker's compensation insurance, advertising, unemployment insurance, and the practice of healthcare in their state.