Under what conditions is the Business Associate for Degree Wellness not required to assist in litigation or administrative proceedings against the Covered Entity?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Business Associate shall make itself, and any subcontractors, employees or agents, available to Covered Entity, at no cost to Covered Entity, to testify as witnesses, or otherwise, in the event of litigation or administrative proceedings being commenced against Covered Entity, its directors, officers or employees based upon 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, except where Business Associate or its subcontractor, employee or agent is a named adverse party.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Business Associate is generally required to assist the Covered Entity in litigation or administrative proceedings related to HIPAA, the HIPAA Regulations, the HITECH Act, the Privacy Rule, the Security Rule, or other security and privacy laws. This assistance includes making themselves, their subcontractors, employees, or agents available to testify as witnesses or otherwise, at no cost to the Covered Entity.
However, there is a specific exception to this requirement. The Business Associate is not obligated to provide assistance if the Business Associate itself, or its subcontractor, employee, or agent, is named as an adverse party in the litigation or administrative proceedings. This means that if the legal action is directly against the Business Associate, they are not required to assist the Covered Entity in defending against the claims.
This provision is important for prospective Degree Wellness franchisees as it clarifies the extent of their obligations to assist the Covered Entity in legal matters related to privacy and security. It also highlights a potential conflict of interest situation where the franchisee (as the Business Associate) is directly involved in the legal action, in which case they are not required to assist the Covered Entity.