Are affiliate-owned Degree Wellness Studios required to contribute to the brand development fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently administer a brand development fund (the "Fund") for the benefit of the entire System of Studio. We use the Fund to meet certain costs related to maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System. We require all Degree Wellness Studios to contribute 1% of their gross revenues to the Fund. All Degree Wellness Studio will be required to contribute to the Fund on the same basis as you, respectively, unless prohibited by law. Your required Fund contribution may be increased to
an amount equal to up to two percent (2%) of the gross revenues generated by your Studio upon 60 days' prior written notice of such an increase via the Manuals or otherwise in writing. Other franchised and affiliate-owned Studio will contribute to the Fund in the same amount and manner as franchised Studio subject only to limitations under applicable law.
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, all Degree Wellness Studios, including those that are affiliate-owned, are required to contribute to the brand development fund. The standard contribution is 1% of gross revenues. However, Degree Wellness retains the right to increase this contribution up to 2% of gross revenues with 60 days' prior written notice.
This policy ensures that both franchised and affiliate-owned studios contribute equally to the fund, which is used for advertising, marketing, and promotional activities that benefit the entire Degree Wellness system. The FDD specifies that affiliate-owned studios will contribute to the fund in the same amount and manner as franchised studios, subject to any legal limitations.
For a prospective franchisee, this means that they can expect consistent contributions to the brand fund across all Degree Wellness locations, regardless of ownership. This can help ensure a more unified and well-funded marketing strategy for the brand. However, franchisees should be aware of the potential for contribution increases and factor this into their financial planning. Franchisees should also confirm whether there are any legal limitations in their specific jurisdiction that might affect the contribution requirements.