What specific areas of healthcare law are Degree Wellness franchisees responsible for complying with?
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, franchisees are responsible for operating their franchise in compliance with all applicable laws, rules, and regulations relating to the practice of health care. These include, but are not limited to, laws concerning licensure, marketing and advertising, the use of medical equipment and devices, and the sale or recommendation of dietary supplements.
Degree Wellness franchisees must also adhere to laws regarding fee splitting prohibitions or restrictions, anti-kickback prohibitions, and other regulations governing relationships between healthcare service providers and suppliers with physicians. This extends to restrictions on self-referrals and medical benefit payment systems, including self-pay, private, and government insurance requirements and regulations. Compliance also involves the advertisement of healthcare and related medical services, as well as patient privacy regulations.
The FDD emphasizes that franchisees must independently investigate these "Professional Laws" applicable to the practice of medicine, healthcare, and the operation of their Degree Wellness franchise in their protected territory. Franchisees must confirm that they are permitted to manage and operate the franchise in accordance with the Degree Wellness system, specifically including providing all products and services and/or hiring healthcare providers and staff to provide all healthcare and related services. Degree Wellness relies on these representations and warranties when granting the franchise.
Furthermore, Degree Wellness franchisees must inform the franchisor immediately of any changes to these Professional Laws, including any new Professional Laws, that would cause their operation of the franchise to be in violation. In such cases, franchisees must propose a method to comply with the Professional Laws, including entering into a Management Agreement if necessary.