What is the Staffer required to do regarding pre-employment screening and testing for employees placed with Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except in instances where the clinical quality of the work performed is in question, Staffer retains the sole and exclusive right and obligation to determine hiring and firing; conduct pre-employment screening and testing; maintain personnel records and files; track employee hours and pay wages and benefits; direct, control and supervise Staffer's employees; conduct performance management; impose discipline; and establish all other terms and conditions of employment of Staffer's employees. Staffer shall at all times remain the sole employer of persons employed by Staffer and, to this end, Staffer and Group agree that no act or omission of Staffer or Group shall be construed to make or render them joint employer, co-employer or alter ego of each other. Nothing in this Agreement shall be construed to create a partnership or joint venture relationship between the parties.
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 retains the sole and exclusive right and obligation to conduct pre-employment screening and testing for its employees. This means that the Degree Wellness franchisee (referred to as Staffer in this context) is responsible for all aspects of hiring, including background checks, drug tests, and any other screening deemed necessary. Degree Wellness itself does not handle these pre-employment procedures.
This arrangement has several implications for a prospective Degree Wellness franchisee. It gives the franchisee control over who they hire and allows them to ensure that all employees meet their standards. However, it also places the burden of compliance with employment laws and regulations on the franchisee. The franchisee must ensure that their screening and testing processes are legally compliant and non-discriminatory.
Furthermore, the Staffer is responsible for maintaining all personnel records and files. This includes documentation related to pre-employment screening and testing. The Staffer must also track employee hours, pay wages and benefits, direct and supervise employees, conduct performance management, and impose discipline. Degree Wellness maintains control over the clinical quality of work performed.
In summary, while Degree Wellness maintains certain controls, the franchisee has significant autonomy and responsibility in managing their employees, including conducting pre-employment screening and testing. This requires the franchisee to have a strong understanding of employment law and best practices in human resources management.