What is the 'Fund' referring to in the context of Degree Wellness fees?

According to Degree Wellness's 2025 Franchise Disclosure Document, the term "Fund" appears in the context of fees related to the franchise agreement. Specifically, it is mentioned alongside the Continuing Franchise Fee, indicating that franchisees are required to make contributions to this "Fund." The FDD also clarifies that if a Degree Wellness franchisee fails to report their studio's gross revenues for any month, the franchisor has the right to debit their account for 120% of the Continuing Franchise Fee and Fund contribution amounts debited during the previous month. Furthermore, interest may be charged on late payments of Fund Contributions, among other fees, at a rate of the lesser of 15% per annum or the highest commercial contract interest rate permitted by law.

While the FDD mentions the "Fund" and its associated contributions, it does not explicitly define what this "Fund" is used for. It is common in franchising for such funds to be allocated towards marketing, advertising, or other system-wide initiatives that benefit all franchisees. However, without a clear explanation in the provided excerpts, it remains unclear what specific purposes the Degree Wellness "Fund" serves.

A prospective Degree Wellness franchisee should seek clarification from the franchisor regarding the specific purpose and allocation of the "Fund." Understanding how these contributions are used is crucial for evaluating the overall value and potential return on investment of the franchise opportunity. It would be prudent to inquire about the Fund's governance, transparency, and how it directly benefits individual franchisees.