Is a Degree Wellness Studio considered a 'covered entity' for purposes of HIPAA?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Although a Studio is not a "covered entity" for purposes of HIPPA, you must comply with any and all federal, state and/or local privacy laws pertaining to your care recipients, including HIPAA and the HI-TECH Act and related laws, rules and regulations. We maintain HIPPA standards although we are not required to. In all cases, you must also comply with laws that apply generally to all businesses. You should investigate these laws and consult with a legal advisor about whether these and/or other requirements apply to your franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Degree Wellness Studio is not considered a "covered entity" for the purposes of HIPAA. However, franchisees must still comply with all federal, state, and local privacy laws pertaining to care recipients, including HIPAA and the HI-TECH Act and related regulations. Degree Wellness maintains HIPAA standards even though they are not required to do so.
This means that while the specific regulations of HIPAA may not directly apply to a Degree Wellness franchise, franchisees are still responsible for protecting the privacy of their clients' health information. This includes understanding and adhering to the broader principles of HIPAA and other privacy laws.
Degree Wellness franchisees must also comply with laws that apply generally to all businesses. The FDD advises franchisees to investigate these laws and consult with a legal advisor about whether these and other requirements apply to their franchise. Violations of these laws and regulations may result in substantial civil or criminal penalties for individuals or entities.