What specific government regulations must Degree Wellness franchisees comply with regarding worker's compensation insurance?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You also agree to operate the Franchise in full compliance with all applicable laws, ordinances, and regulations, including without limitation all government regulations relating to worker's compensation insurance, advertising, unemployment insurance, the practice of health care in your state, and withholding and payment of federal and state income taxes, social security taxes, and sales taxes.
10.8 Insurance
a. Before you open the Franchise and during any Term of this Agreement, you must maintain in force, under policies of insurance issued by carriers in good standing in the state where your Studio is located: (1) comprehensive commercial general liability and motor vehicle liability insurance against claims for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Franchise or otherwise in conjunction with your conduct of the Franchise business pursuant to this Agreement, under one or more policies of insurance containing minimum liability coverage of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; (2) worker's compensation and employer's liability insurance as required by law, with limits equal to or in excess of those required by
statute; (3) professional liability (malpractice) insurance, for each doctor practicing in your Franchise business, having limits of not less than $1,000,000 per occurrence and $3,000,000 in the aggregate; and (4) any other insurance required by applicable law, rule, regulation, ordinance or licensing requirements. We may periodically increase or decrease the amounts of coverage required under these insurance policies, and/or require different or additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. In addition to the foregoing required policies of insurance, we highly recommend that you obtain property damage, business interruption, employment practices, cyber liability, and electronic data loss insurance coverage. You agree that compliance with any state minimum insurance requirements does not relieve you from the obligation to comply with the contractual insurance requirements in this Agreement.
- i. The insurance Degree Wellness requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by Degree Wellness.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees must adhere to all government regulations pertaining to worker's compensation insurance. Specifically, franchisees are required to secure and maintain all necessary licenses, permits, and certificates to operate their franchise in compliance with all applicable laws, ordinances, and regulations.
Degree Wellness franchisees must maintain worker's compensation and employer's liability insurance as mandated by law, with coverage limits that meet or exceed the statutory requirements of the state where their studio is located. This ensures that employees are protected in the event of work-related injuries or illnesses, and that the franchisee is shielded from potential liabilities.
Furthermore, Degree Wellness retains the right to modify the required coverage amounts or types of insurance policies to reflect changes in law, standards of liability, or other relevant circumstances. While Degree Wellness specifies minimum insurance requirements for its own protection, franchisees are advised to consult with their own insurance agents, brokers, and attorneys to determine the appropriate levels of coverage for their specific needs and circumstances, in addition to what Degree Wellness mandates.