Under the Degree Wellness agreement, is the Business Associate required to assist in litigation or administrative proceedings against the Covered Entity?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Business Associate is required to assist the Covered Entity in litigation or administrative proceedings. Specifically, the Business Associate must make itself, its subcontractors, employees, or agents available to the Covered Entity at no cost. This assistance includes providing testimony as witnesses in the event of litigation or administrative proceedings commenced against the Covered Entity, its directors, officers, or employees. The proceedings must be based on a claimed violation of HIPAA, the HIPAA Regulations, the HITECH Act, the Privacy Rule, the Security Rule, or other laws relating to security and privacy.

However, there is an exception to this requirement. The Business Associate is not obligated to assist if the Business Associate, its subcontractor, employee, or agent is a named adverse party in the litigation or administrative proceedings. This exception protects the Business Associate from being forced to assist against its own interests in a legal dispute.

This requirement and exception are important for prospective Degree Wellness franchisees to understand. As a Business Associate, they could be compelled to provide assistance in legal matters involving the Covered Entity, which could involve time and resources. However, they are protected from being forced to assist if they are directly involved as an adverse party in the legal proceedings. This clause ensures that Degree Wellness franchisees operating as Business Associates understand their obligations and potential liabilities regarding legal and administrative matters related to HIPAA and other privacy laws.