How must Degree Wellness franchisees make note payments to Degree Financial?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) You must pay all amounts due by automatic debit, but we have the right to require you to pay all amounts due us or our affiliates by certified or cashier's check or wire transfer. After you sign the documents we require to debit your business checking account automatically for the amounts due (see Exhibit 5 to Franchise Agreement), we will debit your bank account for the Continuing Franchise Fees, Fund contributions, and other amounts you owe us. You must make funds available for withdrawal from your account before each due date.
Source: Item 10 — Financing (FDD pages 31–32)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, franchisees are generally required to make all payments due via automatic debit. However, Degree Wellness retains the right to demand payments via certified or cashier's check, or through wire transfer.
To facilitate automatic debits, franchisees must sign documents that authorize Degree Wellness to debit their business checking accounts for continuing franchise fees, fund contributions, and any other amounts owed. It is the franchisee's responsibility to ensure that sufficient funds are available in the designated account before each payment due date to cover these automatic withdrawals.
This payment structure ensures that Degree Wellness can reliably collect fees and contributions from its franchisees. While automatic debit is the standard method, the option for certified checks or wire transfers provides Degree Wellness with flexibility in case of issues with the automatic debit system or concerns about a franchisee's payment reliability. Franchisees should be aware of these requirements and ensure their accounts are properly set up to avoid any disruptions in their franchise operations.