Is Degree Wellness's Staffer authorized to subcontract services under the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
General Limitation on Staffer's Services. Staffer is hereby expressly authorized to subcontract with other persons or entities for any of the services Staffer is required to perform under this Agreement;
provided, however, that Staffer shall remain responsible for all services performed by such other persons or entities. Staffer may disclose any term of this Agreement to any subcontractor of Staffer who performs services to Group. Staffer will ensure that all subcontractors will, as necessary, enter into Business Associate Agreements with Group as required under HIPAA.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Staffer is expressly authorized to subcontract services to other persons or entities for any of the services the Staffer is required to perform under the agreement. However, the Staffer remains responsible for all services performed by its subcontractors.
Furthermore, the Staffer is allowed to disclose any term of the agreement to any subcontractor who performs services for the Group. The Staffer must also ensure that all subcontractors enter into Business Associate Agreements with the Group, as required under HIPAA (Health Insurance Portability and Accountability Act).
This arrangement allows the Staffer flexibility in fulfilling their obligations by delegating tasks to subcontractors while retaining ultimate responsibility. This could potentially reduce costs or improve efficiency, but the Staffer must carefully manage and oversee the subcontractors to ensure quality and compliance with all applicable regulations, including HIPAA.