Under the Degree Wellness agreement, does the Management Company have an obligation to generate patients for the Licensed Provider?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Developing and implementing a business plan for the Studio and managing the operational workflow of the Studio business, specifically, scheduling patient appointments and responding to patient inquiries, determining fees charged for the provision of supplies and devices to patients, assisting the Licensed Provider in the billing and the collection of fees payable for Licensed Provider's provision of the Studio Services, devices, and supplies to patients pursuant to Section 3.1(c), arranging for participation in discount medical plan organizations, including collection of fees from third-party payors, and maintaining patient records, including the confidentiality thereof, under the direction of Licensed Provider, pursuant to Section 3.1(d) below;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to the 2025 Degree Wellness Franchise Disclosure Document, the Management Company plays a role in managing the operational workflow of the studio business. Specifically, the Management Company is responsible for scheduling patient appointments and responding to patient inquiries. They also assist the Licensed Provider in billing and collecting fees for the services, devices, and supplies provided to patients. Additionally, the Management Company arranges participation in discount medical plan organizations, including collecting fees from third-party payors, and maintains patient records under the direction of the Licensed Provider.
While the Management Company handles scheduling and responding to inquiries, the FDD does not explicitly state that the Management Company has a direct obligation to generate patients for the Licensed Provider. Their responsibilities are centered around managing the existing patient flow and administrative tasks related to patient interaction and billing. The business plan development and implementation are also under the Management Company's purview, which could indirectly impact patient acquisition.
Therefore, a prospective Degree Wellness franchisee should clarify with the franchisor the specific strategies and obligations of the Management Company regarding patient generation. Understanding the extent to which the Management Company is responsible for attracting new patients versus simply managing existing ones is crucial for assessing the potential success and workload distribution within the franchise.