Where in the Degree Wellness FDD can I find additional information about the Brand Development Fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
be assessed a $2,000.00 monthly fee until you open. |
| 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. |
| Local Marketing Requirement | $2,500 per month | Monthly as incurred | Required on a per Studio basis. |
| Presale Marketing Plan | $12,000 | As incurred leading up to your opening date | You must invest at least $12,000 presale marketing to promote your Studio prior to open. These expenses will begin 4 months prior to opening |
| Local and Regional Advertising Cooperatives | Currently, $0 per month, unless established. | As required by the cooperative. | There are currently no advertising cooperatives. This fee will never exceed $5,000 per month. Franchisor owned outlets wil |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, additional information regarding the Brand Development Fund can be found in Item 11. Item 6 also provides details about the fund. Specifically, it outlines that the Brand Development Fund fee is currently 1% of the gross revenues generated by your franchised business over the preceding reporting period, referred to as your "Fund Contribution." This contribution is due each week on a day specified by Degree Wellness.
Degree Wellness retains the right to increase or decrease this fee at any time, but the contribution will not exceed 2% of your gross revenues. Franchisees' obligations to contribute to the fund begin upon the opening of their franchised business. Furthermore, Item 6 clarifies that if a 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 and Fund contribution amounts that were debited during the previous month.
Item 6 also states that if Degree Wellness establishes an advertising cooperative that includes a franchisee's studio, the voting power of any studios owned by Degree Wellness or its affiliates within the cooperative will be equivalent to the franchisee's voting power. This ensures that all members of the cooperative have an equal say in advertising decisions, regardless of ownership. Prospective franchisees should carefully review Item 11 to understand the specifics of how the Brand Development Fund is managed and how it benefits the Degree Wellness franchise system.