What taxes is Degree Wellness responsible for paying?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is responsible for withholding and paying federal and state income taxes, social security taxes, and sales taxes. Degree Wellness franchisees must operate their franchise in compliance with all applicable laws, ordinances, and regulations. This includes all government regulations relating to worker's compensation insurance, advertising, unemployment insurance, and the practice of health care in their state.

Degree Wellness requires franchisees to secure and maintain all required licenses, permits, and certificates relating to the operation of the franchise in their own name. The franchisee is considered the sole and independent owner of their franchised business and is in full control, conducting the business according to their own judgment, subject to the franchise agreement. Franchisees must identify themselves as the independent owner and a Degree Wellness franchisee.

Franchisees are required to enroll in and maintain human resources and payroll services provided by a vendor designated by Degree Wellness. These services include payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring, and employee onboarding. This suggests that while the franchisee is ultimately responsible for these taxes, Degree Wellness mandates the use of a specific vendor to handle the actual filing and payment processes.