Under what condition is a Degree Wellness franchisee not required to actively participate in the day-to-day operation of the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
10.7 Management and Personnel of the Franchise
- a. Unless we approve your employment of a General Manager to operate the Franchise as provided in Paragraph 4, you must actively participate in the actual, on-site, day-to-day operation of the Franchise, and devote as much of your time as is reasonably necessary for the efficient operation of the Franchise. If you are not an individual, then at least one (1) Principal Owner, director, officer, or other employee of you whom we approve must comply with this requirement. If we agree that you may employ a General Manager, then the General Manager must fulfill this requirement.
- b. Any General Manager must obtain all licenses and certifications required by law before assuming his or her responsibilities at the Franchise.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee is generally required to actively participate in the day-to-day, on-site operation of the franchise. This means the franchisee must devote a reasonable amount of time to ensure the efficient operation of the Degree Wellness studio. If the franchisee is a corporation or other business entity, at least one principal owner, director, officer, or approved employee must fulfill this requirement.
However, Degree Wellness may approve the franchisee's employment of a General Manager to operate the franchise. In this case, the General Manager must fulfill the active, on-site, day-to-day operational requirement instead of the franchisee or their principal. The General Manager must also obtain all licenses and certifications required by law before assuming their responsibilities.
This policy provides some flexibility for Degree Wellness franchisees who may not be able or willing to personally manage the daily operations. However, it's crucial to obtain Degree Wellness's approval for a General Manager and ensure that the manager is fully qualified and compliant with all legal requirements. The franchisee remains responsible for the overall success and compliance of the franchise, even with a General Manager in place.