For a Degree Wellness franchise, what account is the money transferred from to pay the Management Fee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 The Management Fee shall be paid to Management Company from the money transferred each day from Licensed Provider's Account into Management Company's operating account pursuant to Section 3.1(c).
(g) Billing and collecting fees charged by Licensed Provider for the Studio Services, or for other goods or services sold at or through the Studio, in compliance with all laws and regulations and all requirements under third party payor contracts and requirements, depositing payments made by patients and third party payors to the Studio into a bank account meeting Management Company's requirements (the "Licensed Provider Account");
(k) Applying funds transferred to it from the Licensed Provider Account to pay the designated operating expenses of the Studio.
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 Management Fee is paid from the Licensed Provider's Account. Each day, money is transferred from this account into the Management Company's operating account to cover the fee.
The Licensed Provider Account is a bank account meeting Degree Wellness's requirements where payments made by patients and third-party payors are deposited. This account is used for billing and collecting fees charged by the Licensed Provider for services or goods sold at the studio.
This arrangement ensures that the Management Company receives its fees directly from the revenue generated by the Degree Wellness studio, streamlining the payment process. The Management Company also applies funds transferred from the Licensed Provider Account to pay the designated operating expenses of the studio.