How will Degree Wellness communicate an increase in the brand fund contribution to Degree Wellness franchisees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Degree Wellness franchisees are currently required to contribute 1% of their gross revenues to the brand development fund. Degree Wellness retains the right to increase this contribution up to a maximum of 2% of gross revenues.
Degree Wellness will communicate any increase to the brand fund contribution via written notice at least 60 days in advance. This notification can be delivered through the franchise's manuals or separately in writing. This advance notice allows franchisees time to adjust their financial planning to accommodate the increased expense.
It is important to note that all Degree Wellness studios are required to contribute to the fund on the same basis, unless prohibited by law. This ensures that all franchisees are treated equitably with respect to brand fund contributions. Prospective franchisees should consider the potential for this increase when evaluating the financial feasibility of a Degree Wellness franchise.