When do the Brand Development Fund contribution obligations commence for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Development Fund (the "Fund") | Currently 1% of gross revenues generated by your Franchised Business over the preceding reporting period (your "Fund Contribution") | Due each week on the day we specify (3). | We can increase or decrease the fee at any time. However, your contribution will not exceed 2% of your gross revenues. See Item 11 for additional information. Your Fund Contribution obligations will commence upon the opening of your Franchised Business. |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the obligation to contribute to the Brand Development Fund begins upon the opening of the franchised business. The contribution is currently set at 1% of gross revenues generated by the franchise during the preceding reporting period. These contributions are due weekly on a specified day.
Degree Wellness retains the right to adjust the Brand Development Fund fee, but the contribution will not exceed 2% of the franchise's gross revenues. This fund is used for the overall development of the Degree Wellness brand, and further details can be found in Item 11 of the FDD.
Prospective franchisees should factor this ongoing expense into their financial projections. Understanding when these obligations begin is crucial for managing cash flow during the initial stages of operating a Degree Wellness franchise.