What services will the Degree Wellness franchisee provide to the PC under the Management Agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
on to signing the Franchise Agreement with us, before you begin operating the Studio Management Business, you must enter into a management agreement ("Management Agreement") with the PC. If permitted by state and local law, the PC may be the same entity as your franchisee entity or have the same owners. Under the Management Agreement, you will provide the PC with management and administrative services and support consistent with the System to support the PC's health care business and its delivery of health care services and related services and products to patients at a Studio, consistent with all applicable laws and regulations. Our Franchise Disclosure Document contains a general form of Management Agreement as an exhibit that can serve as a starting point for satisfying this requirement, 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 will be located.
iv) You must obtain our written approval of the final Management Agreement prior to signing it with the PC. We may provide you with assistance in preparing the Management Agreement, but you are responsible for determining whether such agreement is in
compliance with all applicable laws, rules and regulations of the state in which the Studio is located. You must have a Management Agreement in effect with a PC at all times during the operation of the Franchised Business and the Initial Term of this Agreement.
v) We must approve the PC and its owners, but you are responsible for ensuring that the PC is in compliance with all applicable laws, rules and regulations of the state in which the Studio is located.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee operating a Studio Management Business will enter into a Management Agreement with a Professional Corporation (PC). Under this agreement, the Degree Wellness franchisee will provide the PC with management and administrative services and support. These services must align with the Degree Wellness System to support the PC's healthcare business, including the delivery of healthcare services, related services, and products to patients at the studio. All services must comply with applicable laws and regulations.
The Franchise Disclosure Document includes a general form of Management Agreement as an exhibit, which serves as a starting point. However, the final Management Agreement must be approved by Degree Wellness and comply with all relevant state and local laws. The franchisee is responsible for ensuring the agreement's compliance with these laws, rules, and regulations. Degree Wellness may offer assistance in preparing the Management Agreement, but the ultimate responsibility rests with the franchisee.
The franchisee must maintain a Management Agreement with a PC throughout the entire term of the Franchise Agreement. Degree Wellness retains the right to approve the PC and its owners, but the franchisee is responsible for ensuring that the PC complies with all applicable laws and regulations in the state where the studio is located. It is important to note that the PC will be responsible for employing and controlling the personnel who provide health-related services at the Degree Wellness studio.