factual

Is a Degree Wellness franchisee required to pay a monthly Technology Fee?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.4 Technology Fee. You are required to pay the monthly Technology Fee, defined and discussed in Section 11.4, for certain Website and technology-related services and expenses and any fees relating to the required human resources and payroll services discussed in Section 10.7.

Source: Item 23 — Receipts (FDD pages 66–257)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly Technology Fee. This fee, as defined in Section 11.4 of the FDD, covers the costs associated with website and technology-related services, as well as any fees related to required human resources and payroll services, as discussed in Section 10.7.

This means that as a Degree Wellness franchisee, you must budget for this ongoing monthly expense. The Technology Fee is in addition to other fees such as the Continuing Franchise Fee and Brand Fund contributions. The FDD specifies that in the event of termination, Degree Wellness is entitled to recover, among other things, the franchisee's average monthly Technology Fee multiplied by the number of months remaining in the term of the agreement, discounted by a present value discount factor of five percent.

Prospective franchisees should carefully review Section 11.4 and Section 10.7 of the Degree Wellness FDD to fully understand the scope of services covered by the Technology Fee and how the amount is determined. It would also be prudent to inquire about the typical range of this fee and whether it is subject to change during the franchise term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.