What discretion does Degree Wellness have over advertising programs financed by the fund?

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has extensive control over the advertising programs financed by the advertising fund. Degree Wellness has sole discretion over the creative concepts, materials, endorsements, and media used in advertising programs. They also have sole discretion over the geographic, market, and media placement and allocation of the programs.

This means that Degree Wellness, not the franchisees, decides how the advertising fund is spent and what kind of advertising is created. Degree Wellness also determines the geographic areas and markets that the advertising will target. While Degree Wellness aims to maximize recognition of the marks and goodwill of Degree Wellness Studio franchises, they don't guarantee that advertising expenditures in any area will be proportionate to the contributions from franchises in that area. Nor do they guarantee that any Degree Wellness Studio franchise will directly benefit from the advertising in proportion to their contribution.

Degree Wellness has the right to determine the composition of all geographic territories and market areas for the development and implementation of advertising programs. The fund can be used to cover various costs, including those for television, radio, magazine, billboard, newspaper, internet, and other media programs, as well as marketing research, website development, search engine optimization, social media, and the employment of advertising agencies. Degree Wellness will provide franchisees with marketing materials, either digitally or in hard copies, and may charge for these copies at their discretion.

This arrangement gives Degree Wellness significant power over the advertising and marketing strategies used to promote the brand. While franchisees contribute to the fund, they have limited direct control over how those funds are spent. Prospective franchisees should consider this when evaluating the Degree Wellness franchise opportunity, as the effectiveness and allocation of advertising resources are determined by Degree Wellness.