What is the definition of 'Fund Contribution' in relation to the Degree Wellness Brand Development Fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Development Fund (the "Fund") | Currently 1% of gross revenues generated by your Franchised Business over the preceding reporting period (your "Fund Contribution") | Due each week on the day we specify (3). | We can increase or decrease the fee at any time. However, your contribution will not exceed 2% of your gross revenues. See Item 11 for additional information. Your Fund Contribution obligations will commence upon the opening of your Franchised Business. |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the 'Fund Contribution' is defined as a percentage of gross revenues generated by a franchisee's business, specifically for the Brand Development Fund. Currently, this contribution is 1% of gross revenues. This amount is due weekly on a specified day. Degree Wellness retains the right to increase or decrease this fee, but it will not exceed 2% of the franchisee's gross revenues. The obligation to contribute to the Brand Development Fund begins when the franchised business opens.
This means that a Degree Wellness franchisee must allocate a portion of their weekly revenue to the Brand Development Fund, which is used to support the overall brand. The fact that Degree Wellness can change the contribution percentage means that franchisees need to be aware that this expense could fluctuate, although it is capped at 2%.
Franchisees should carefully consider the implications of this ongoing expense and factor it into their financial projections. They should also inquire about how the funds are used and what benefits they can expect to receive from the Brand Development Fund, as detailed further in Item 11 of the FDD. Understanding the allocation of these funds can help franchisees assess the value they receive in return for their contribution.