Does Staffer guarantee the extent to which any fees billed will be collected for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Group agrees to keep and provide to Staffer all documents, opinions, diagnoses, recommendations, and other evidence and records necessary for the purpose of supporting fees charged for professional medical and other services from time to time. Staffer shall maintain complete and accurate records, consistent with the general practices of Staffer of all fees, charges and billings of all services contemplated hereby. It is expressly understood that the extent to which Staffer will endeavor to collect such fees, the methods of collecting, the settling of disputes with respect to charges and the writing off of fees that may be or appear to be uncollectible shall at all times be at the sole discretion of Staffer, and Staffer does not guarantee the extent to which any fees billed will be collected. Group or Group's duly authorized agent shall have the right at all reasonable times and upon the giving of reasonable notice to examine, inspect and copy the records of Staffer pertaining to such fees, charges, billings, costs and expenses.
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, Staffer does not guarantee the extent to which any fees billed will be collected. The document states that Staffer has the authority to manage billing and collections, including receiving payments on behalf of the group. However, the extent to which Staffer tries to collect fees, the methods used for collection, settling disputes, and writing off uncollectible fees are all at Staffer's discretion.
This means that as a Degree Wellness franchisee, you bear the risk of uncollected fees. While Staffer will manage the billing and collection process, they are not obligated to recover all billed amounts. This could impact your revenue and profitability, as you may not receive payment for all services rendered.
It is important for a prospective Degree Wellness franchisee to understand the implications of this arrangement. You should inquire about Staffer's collection policies, their historical success rates in collecting fees, and the criteria they use for writing off uncollectible amounts. Understanding these factors can help you assess the potential financial risks associated with this aspect of the franchise agreement. You also have the right to examine Staffer's records related to fees, charges, and billings.