Who comprises the members of a Degree Wellness advertising cooperative?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement require you to participate in any such advertising cooperative or council as directed by us. The members of the Cooperative for any such area will consist of all Degree Wellness Studios whether operated by us, our affiliate, or by any of 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, the members of a local or regional advertising cooperative will consist of all Degree Wellness Studios in the area. This includes studios operated by the franchisor, its affiliates, wholly-owned subsidiaries, and franchisees. Franchisees will administer the cooperative.
For a prospective franchisee, this means that if an advertising cooperative is established in their area, they will automatically be a member along with all other Degree Wellness locations, regardless of ownership. The franchisee will have a say in how the cooperative is run, as franchisees administer it. The number of memberships, and therefore votes, a franchisee has is determined by the number of locations they own within the cooperative.
The FDD specifies that if Degree Wellness requires participation in a cooperative advertising campaign, the minimum contribution will be $1,000 per month, but the actual amount will be determined by the cooperative's governing documents. The $1,000 minimum monthly cooperative contribution will apply to the satisfaction of the local advertising requirement once the Studio is open at least 12 full months. The contribution amount will be set by a majority vote of the members of the cooperative.
It is important to note that the governing documents of the cooperative are not available for franchisee review, so the franchisee will not know the specific rules and procedures of the cooperative until it is formed. Franchisees should inquire about the typical structure and operation of these cooperatives during their due diligence.