Who has the sole responsibility for operating the Degree Wellness franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care?
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 applicable to the practice of medicine, health care and the operation of your Franchise in the Protected Territory, and that you have confirmed under the Professional Laws that you are permitted to manage and operate the Franchise in accordance with the System, specifically including providing all products and services to be offered by your Franchise and/or hiring health care providers and staff to provide all health care and related services to be offered by your Franchise. You acknowledge and agree that we are relying on your representations and warranties in granting the Franchise to you. You further agree and acknowledge that you must operate your Franchise in compliance with the Professional Laws during the Term of this Agreement and, in the event there are any changes to the Professional Laws (including any new Professional Laws) that would cause your operation of the Franchise to be in violation of the Professional Laws, you will immediately inform us of the change and your proposed method to comply with the Professional Laws, including entering into a Management Agreement, if necessary.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee has sole responsibility for operating the franchise in compliance with all applicable healthcare laws, rules, and regulations. This includes, but is not limited to, areas such as licensure, marketing and advertising, the use of medical equipment and devices, the sale or recommendation of dietary supplements, and adherence to laws regarding fee splitting, anti-kickback prohibitions, and self-referrals. It also encompasses compliance with medical benefit payment systems, advertising of healthcare services, and patient privacy regulations.
Degree Wellness requires that franchisees independently investigate and confirm that they are permitted to manage and operate the franchise in accordance with the Degree Wellness system under these Professional Laws. This includes providing all products and services and/or hiring qualified healthcare providers and staff. Degree Wellness emphasizes that it relies on the franchisee's representations and warranties in granting the franchise.
The franchisee must inform Degree Wellness immediately of any changes to Professional Laws that could cause a violation and propose a method to comply, potentially including entering into a Management Agreement. This ensures that the Degree Wellness franchise operates within legal boundaries and maintains the integrity of its healthcare services.
This allocation of responsibility is typical in franchise systems within regulated industries like healthcare, where compliance is critical. The franchisee's expertise and adherence to local laws are essential for the successful and lawful operation of the Degree Wellness franchise.