On what is the Continuing Franchise Fee for Degree Wellness based?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Franchise Fee | 7% of gross revenues (2) | Due on the day of each month we specify (3). | Based on gross revenues during the previous month (2). If you do not open for business within 12 months after execution of the Franchise |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Continuing Franchise Fee is based on 7% of gross revenues. This fee is calculated from the gross revenues earned during the previous month. The fee is due on a specific day each month, as determined by Degree Wellness.
Gross revenues are defined as the total income derived from the operation of the Degree Wellness franchise. This includes all revenue and receipts, whether received at the franchise location or through business conducted by the franchise, such as fees for services or products, gift certificate sales, and revenue from product sales. These revenues encompass cash, checks, credit card payments, debit card transactions, barters, exchanges, and other credit transactions, without any deductions for inability or failure to collect payments. The only exclusions from gross revenues are sales taxes collected from customers and remitted to the appropriate taxing authority, as well as any customer refunds and credits actually made by the franchise.
If a Degree Wellness franchisee fails to report their studio's gross revenues for any month, Degree Wellness has the right to debit the franchisee's account for 120% of the Continuing Franchise Fee and fund contribution amounts that were debited during the previous month. This highlights the importance of accurate and timely reporting of gross revenues to avoid potential overcharges and reconciliation issues. Degree Wellness will debit the franchisee's bank account for the Continuing Franchise Fees after the franchisee signs the required documents to authorize automatic debits.