Can Degree Wellness charge franchisees for marketing materials?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
materials, programs, and promotional activities, including, without limitation, (a) costs for preparing and conducting television, radio, magazine, billboard, newspaper, internet and other media programs and activities, (b) costs associated with conducting marketing research, (c) costs associated with website development and marketing, including without limitation, search engine optimization and social media, (d) administering regional and multi-regional advertising programs, including, without limitation, purchasing direct mail and other media advertising, (e) employing advertising, program and marketing agencies, and vendors providing marketing services, (f) development, implementation and maintenance of online asset management tools, (g) marketing and advertising training programs and materials, and (h) costs for providing promotional brochures and advertising templates and materials to Degree Wellness Studio franchises. As available, we will provide you with digital or hard copies of our marketing materials via our intranet. We may, at our discretion, charge you for hard or digital copies of these marketing materials. You agree that the amounts you contribute to the Fund may be used for placement of advertising in television, radio, newspaper or other media as solely determined by Degree Wellness.
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 charge franchisees for marketing materials. Specifically, Degree Wellness may provide digital or hard copies of marketing materials via its intranet and "may, at [its] discretion, charge you for hard or digital copies of these marketing materials."
Degree Wellness has established an advertising fund where franchisees contribute 1% of gross revenues, but this contribution may increase to a maximum of 2%. These funds are used for various marketing and advertising activities, including the development of marketing materials. The fund can be used for costs related to preparing and conducting media programs, marketing research, website development, and providing promotional materials to Degree Wellness Studio franchises.
In addition to the advertising fund, Degree Wellness may establish a program to provide additional marketing services to Studio franchises, involving local client placement for marketing activities. Participation in this program would be mandatory, and franchisees would be required to pay a reasonable fee determined by Degree Wellness. The franchisor reserves the right to change the amount of this fee at any time. Degree Wellness also requires franchisees to pay a monthly Technology Fee for website and technology-related services.