What taxes is Degree Wellness responsible for regarding the franchisee's business?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. You must establish any training programs for your employees and/or independent contractors that we may prescribe in writing from time to time. You are required to enroll in and maintain the human resources and payroll services provided by the vendor we designate for such services, including the payment of any fees and execution of any agreement required by such vendor. The required services consist of payroll processing, payroll tax filing, human resource solutions, benefits administration services, hiring and employee onboarding.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
The 2025 Degree Wellness Franchise Disclosure Document states that the franchisee is responsible for payroll tax filing. Specifically, the franchisee is required to enroll in and maintain human resources and payroll services from a vendor designated by Degree Wellness. These services include payroll processing and payroll tax filing.
This means that Degree Wellness itself does not assume responsibility for filing or paying payroll taxes related to the franchisee's employees. The franchisee must use the vendor Degree Wellness designates and cover all associated fees and agreements. This requirement ensures that payroll and human resources are handled according to Degree Wellness's standards.
For a prospective franchisee, this means factoring in the costs associated with the mandated payroll and HR services vendor. It also highlights the importance of understanding the vendor's terms and conditions, as the franchisee will be directly responsible for compliance with payroll tax regulations. Failing to comply with these regulations can result in penalties and legal issues for the franchisee.