When does the $1,000 minimum monthly cooperative contribution apply to the satisfaction of the local advertising requirement for a Degree Wellness studio?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
f our affiliate's wholly-owned subsidiaries or by franchisees. The franchisees will administer the cooperative. If we require you to participate in an established cooperative advertising campaign for your market area, you minimum contribution will be $1,000 per month. The actual amount will be set by the cooperatives governing documents, of which we do not have a copy to provide to you. Each cooperative will establish their own governing documents and self-govern. If Franchisor-owned locations are a part of the advertising cooperative, then they will contribute at the same rate as franchisee-owned locations and have the same voting rights. Each franchisee in the same market will be required to be a member. Your $1,000 minimum monthly cooperative contribution will apply to the satisfaction of your local advertising requirement once the Studio is open at least 12 full months. Governing documents are not available for the franchisee's review. The contribution amount will be set by a majority vote of the members of the cooperative. A membership of the cooperative is determined by the numbers of locations a franchisee may have. For example if a franch
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 32–42)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if Degree Wellness establishes an advertising cooperative and requires franchisee participation, a minimum monthly contribution of $1,000 will be required. However, this contribution only applies toward satisfying the franchisee's local advertising obligations after the Degree Wellness studio has been open for at least 12 full months. The actual contribution amount will be determined by the cooperative's governing documents.
The cooperative will be administered by the franchisees, and Degree Wellness retains the right to change or dissolve any cooperative at its discretion. If Degree Wellness-owned locations are part of the advertising cooperative, they will contribute at the same rate as franchisee-owned locations and have the same voting rights. Each franchisee in the same market will be required to be a member.
This means that for the first year of operation, franchisees must meet the local advertising requirement through other means, in addition to any presale marketing investments. After the first year, participation in the cooperative, if required, can help fulfill the local advertising commitment, with the specific amount determined by the cooperative's rules.