What is Degree Wellness Group required to reimburse Staffer for?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before the fifteenth (15th) day of each calendar month during the Term, commencing with the second such month, and on or before the fifteenth (15th) day of the calendar month following the expiration or earlier termination of this Agreement, Group shall pay to Staffer an amount equal to the Monthly Staffing and Ancillary Fee (as defined on Exhibit C attached hereto and incorporated herein by this reference) as a fee for Staffing Services furnished by Staffer to Group during the preceding calendar month, also, if appropriate, the Marketing Fee (as defined on Exhibit C) as a fee for any marketing services furnished by Staffer to Group during the preceding calendar month, and Group shall immediately reimburse Staffer for any expenses paid by Staffer on behalf of or for the Group's benefit.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness Group is required to reimburse Staffer for any expenses paid by Staffer on behalf of or for the Group's benefit. This reimbursement is in addition to the Monthly Staffing and Ancillary Fee and the Marketing Fee, if applicable, which Degree Wellness Group pays to Staffer for staffing and marketing services. These payments are due on or before the fifteenth day of each calendar month, commencing with the second month of the agreement, and also following the expiration or termination of the agreement.
This arrangement means that Degree Wellness franchisees are responsible for covering costs Staffer incurs while providing services for the franchise. This could include a variety of expenses, and the franchisee needs to understand what types of expenses Staffer might incur and how those expenses will be documented and approved.
It is important for prospective Degree Wellness franchisees to clarify with the franchisor what specific types of expenses fall under this reimbursement clause. Understanding the scope of these potential reimbursements is crucial for budgeting and financial planning. Franchisees should also establish clear procedures for expense reporting and approval to avoid disputes and ensure transparency in financial transactions with Staffer.