How can a Degree Wellness franchisee request the annual statement of the brand development fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund will be accounted for separately from our other funds and will not be used to pay any of our general operating expenses, except for salaries, administrative costs, and overhead that we incur in activities reasonably related to the administration of the Fund and its marketing programs, including preparing advertising and marketing materials, and collecting and accounting for contributions to the Fund. We may spend in any fiscal year an amount greater or less than the aggregate contributions to the Fund in that year, and the Fund may borrow from us or other lenders to cover the Fund's deficits or invest any surplus for future use by the Fund. We will prepare an annual unaudited statement of monies collected and costs incurred by the Fund and will provide it to you upon written request. A franchisee may request an annual report of general category spending of the Fund. This report may be requested in writing and will be provided in the manner we determine no more than one time per year and only after March 1 for the prior year. There is no history of a prior fiscal year to disclose in this disclosure document.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 32–42)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee can request an annual unaudited statement of monies collected and costs incurred by the brand development fund by submitting a written request to Degree Wellness. Additionally, a franchisee may request a report of general category spending of the Fund. This report must also be requested in writing.
It is important to note that the report of general category spending will be provided in a manner determined by Degree Wellness, and it can only be requested one time per year. The request can only be made after March 1 for the prior year.
Degree Wellness retains control over the fund's administration, including creative concepts, materials, media usage, and geographic allocation. The fund is used for various advertising and marketing activities at the discretion of Degree Wellness. Franchisees should be aware that Degree Wellness assumes no liability regarding the fund's operation or the collection, administration, or disbursement of monies paid into it.