When does the Degree Wellness franchisee's obligation to contribute to the Brand Development Fund commence?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Development Fund (the "Fund") | Currently 1% of gross revenues generated by your Franchised Business over the preceding reporting period (your "Fund Contribution") | Due each week on the day we specify (3). | We can increase or decrease the fee at any time. However, your contribution will not exceed 2% of your gross revenues. See Item 11 for additional information. Your Fund Contribution obligations will commence upon the opening of your Franchised Business. |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee's obligation to contribute to the Brand Development Fund begins upon the opening of their franchised business. This means that as soon as the Degree Wellness studio opens its doors, the franchisee must start contributing a percentage of their gross revenues to the Fund.
The Brand Development Fund contribution is currently set at 1% of the gross revenues generated by the franchised business during the preceding reporting period. These contributions are due each week on a specified day. However, Degree Wellness retains the right to increase or decrease this fee at any time, although the contribution will not exceed 2% of the franchisee's gross revenues.
This fund is used for the overall development of the Degree Wellness brand. It is important for prospective franchisees to factor this ongoing expense into their financial projections, as it directly impacts their operating costs from the moment they begin operations. Franchisees should also review Item 11 of the FDD for more information about the Brand Development Fund and how it is used.