What is the deadline for Degree Wellness Group to pay the Monthly Staffing and Ancillary Fee to Staffer?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Group and Staffer hereby mutually recognize and acknowledge that Staffer will incur substantial costs and expenses in fulfilling Staffer's obligations to Group, and that such costs and expenses may vary during each month of this Agreement. On or before the fifteenth (15th) day of each calendar month during the Term, commencing with the second such month, and on or before the fifteenth (15th) day of the calendar month following the expiration or earlier termination of this Agreement, Group shall pay to Staffer an amount equal to the Monthly Staffing and Ancillary Fee (as defined on Exhibit C attached hereto and incorporated herein by this reference) as a fee for Staffing Services furnished by Staffer to Group during the preceding calendar month, also, if appropriate, the Marketing Fee (as defined on Exhibit C) as a fee for any marketing services furnished by Staffer to Group during the preceding calendar month, and Group shall immediately reimburse Staffer for any expenses paid by Staffer on behalf of or for the Group's benefit.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Degree Wellness Group must pay the Monthly Staffing and Ancillary Fee to Staffer on or before the fifteenth (15th) day of each calendar month during the term of the agreement. This payment schedule commences with the second month of the agreement.
In practical terms, this means that if a Degree Wellness franchisee (Group) enters into an agreement with Staffer, they will begin making payments for staffing and ancillary services in the second month of the agreement. These payments are due by the 15th of each month. The fee covers the Staffing Services furnished by Staffer to Group during the preceding calendar month. The franchisee is also responsible for immediately reimbursing Staffer for any expenses paid by Staffer on behalf of or for the Group's benefit.
This consistent monthly payment obligation is a significant financial consideration for prospective Degree Wellness franchisees. It is important to understand how the Monthly Staffing and Ancillary Fee is calculated, as defined in Exhibit C of the agreement, to accurately forecast operating expenses. Additionally, franchisees should be aware that this payment obligation extends even after the termination of the agreement, with a final payment due on or before the fifteenth (15th) day of the calendar month following the expiration or earlier termination of the agreement.