Under what conditions might Degree Wellness require a General Manager to have an equity interest in the franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
4.1 General Manager. At your request, we may, but are not obligated to, agree for you to employ a general manager to operate the Franchise ("General Manager"). The term "General Manager" means an individual with primary day-to-day responsibility for the Franchise's operations, and may or may not be you (if you are an individual) or a Principal Owner, officer, director, or employee of yours (if you are other than an individual). We may or may not require that the General Manager have an equity interest in the Franchise. The General Manager will be obligated to devote his or her full time, best efforts, and constant personal attention to the Franchise's operations, and must have full authority from you to implement the System at the Franchise. You must not hire any General Manager or successor General Manager without first receiving our written approval of such General Manager's qualifications. Each General Manager and successor General Manager must attend and complete our Initial Training (as defined herein) prior to commencing the role of General Manager. No General Manager may have any interest in or business relationship with any business competitor of your franchise. Each General Manager must sign a written agreement, in a form approved by us, to maintain confidential our Confidential Information described in Paragraph 9.1, to abide by non-solicitation and non-disparagement covenants, and to abide by the covenants not to compete described in Paragraph 9.3. We can provide a form for this required written agreement, however, our form is subject to review by your attorney for compliance with all local laws and rules. You must forward to us a copy of each such signed agreement. If we determine, in our sole discretion, during or following completion of the Initial Training program, that your General Manager (if any) is not qualified to act as General Manager of the Franchise, then we have the right to require you to choose (and obtain our approval of) a new individual for that position.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness may or may not require that a General Manager have an equity interest in the franchise. The decision to require an equity interest is at Degree Wellness's discretion.
If a franchisee requests to employ a general manager to operate the franchise, Degree Wellness has the option to agree to this arrangement. The General Manager would have primary day-to-day responsibility for the franchise's operations. The General Manager must have full authority from the franchisee to implement Degree Wellness's system at the franchise.
Degree Wellness must provide written approval of the General Manager's qualifications before they are hired. The General Manager must also attend and complete Degree Wellness's Initial Training program before starting their role. Degree Wellness retains the right to require the franchisee to choose a new individual for the General Manager position if they determine the current General Manager is not qualified during or after the Initial Training program.