When is the Continuing Franchise Fee due for a Degree Wellness franchise?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial franchise fee.
Item 6
OTHER FEES
| 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 Agreement, you will be assessed a $500.00 monthly fee until you open. If you do not open for business within 15 months after execution of the Franchise Agreement, you will be assessed a $1,000.00 monthly fee until you open. If you do not open for business within 18 months after execution of the Franchise Agreement, you wi |
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, which is 7% of gross revenues, is due on the day of each month that Degree Wellness specifies. This fee is based on the gross revenues earned during the previous month.
It's important to note that Degree Wellness requires all payments to be made via automatic debit. Franchisees must ensure funds are available in their account before each due date. If a Degree Wellness franchisee fails to open their studio within 12 months after signing the Franchise Agreement, they will be assessed a $500 monthly fee until they open. This monthly fee increases to $1,000 if the studio does not open within 15 months, and to $2,000 if it does not open within 18 months.
If a Degree Wellness franchisee does not report their studio's gross revenues for any month, Degree Wellness may debit their account for 120% of the Continuing Franchise Fee amounts that they debited during the previous month. If the debited amount is less than what is actually owed, Degree Wellness will debit the account for the balance on the day they specify. Conversely, if the debited amount is greater than what is owed, Degree Wellness will credit the excess amount, without interest, against the amount debited from the account during the following month.