Is a Degree Wellness franchisee required to establish and maintain a bookkeeping system?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement or promptly after receiving notice from us about our requirement for your to sign the Service Agreement. [The terms and conditions of any such Service Agreement are hereby incorporated herein by reference (the "Additional Terms and Conditions"). A copy of any such Service Agreement shall be attached to this Agreement as Exhibit 4.]
- c. Your full implementation of our computer system and software requirements, including our designated billing system, is a crucial part of your Studio's start-up and operation, and you and we agree that the Computer System requirements are a top priority. Accordingly, if you do not fully implement our designated Computer System, including required software (called "going live") within acceptable timeframes, you will be required to pay additional fees to us, as follows:
- o If you have not "gone live" within two (2) months after the conclusion of your initial training program, you will be required to pay a fee of $500.00 per month for each month thereafter, due and payable on the first (1st) day of each calendar month in such period with no pro-rations for partial months; and
- o If you have not "gone live" within six (6) months, the fee will be increased to $1,000.00 per month commencing within the sixth (6th) month after the conclusion of the initial training program.
Nothing in this paragraph shall prohibit us from exercising our r
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 FDD, Degree Wellness franchisees are required to implement and maintain the brand's designated computer system, which includes a billing system. While the FDD does not explicitly use the term "bookkeeping system," the requirement to use a designated billing system suggests a need to maintain financial records electronically as part of the franchise operations.
According to the FDD, full implementation of the Degree Wellness computer system and software, including the designated billing system, is considered a crucial part of the studio's start-up and operation. Failure to fully implement the designated computer system, including required software or "going live" within acceptable timeframes, will result in additional fees. These fees can be $500 per month for each month after two months from the conclusion of the initial training program, increasing to $1,000 per month after six months.
Degree Wellness also requires franchisees to maintain a dedicated high-speed internet service for remote access and information retrieval by the franchisor. While the FDD does not detail the specifics of the bookkeeping practices, the emphasis on a designated computer system and billing software implies that franchisees must maintain organized and accessible financial records as part of their operational obligations. Prospective franchisees should clarify with Degree Wellness the specific requirements for financial record-keeping and reporting to ensure full compliance with the franchise agreement.