Does Degree Wellness guarantee specific results from the advertising fund?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that the Fund will be intended to maximize recognition of the Marks and the goodwill and patronage of Degree Wellness Studio franchises. Although we will endeavor to use the Fund to develop advertising and marketing materials, and to place advertising in a manner that will benefit all Degree Wellness Studio franchises, we undertake no obligation in developing, implementing, or administering advertising or promotional programs to ensure that expenditures by the Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Fund by Degree Wellness Studio franchises operating in that geographic area, or that any Degree Wellness Studio franchise will benefit directly or in proportion to its contribution to the Fund from the development of advertising and marketing materials or the placement of advertising. Degree Wellness shall not be a fiduciary to you with respect to the management of the Fund. Except as expressly provided in this
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness does not guarantee specific results or benefits from the advertising fund to its franchisees. While Degree Wellness aims to maximize recognition of the brand and goodwill through the fund, it does not commit to ensuring that advertising expenditures in any specific geographic area are proportionate to the contributions made by franchisees in that area. Nor does Degree Wellness guarantee that any individual Degree Wellness franchise will directly benefit from the advertising and marketing materials in proportion to their contribution to the fund.
Degree Wellness retains sole discretion over the advertising programs financed by the fund, including creative concepts, materials, media used, and the geographic placement and allocation of these programs. The advertising fund is intended for national, regional, or local marketing and promotional programs that Degree Wellness deems necessary to promote the goodwill and image of all Degree Wellness Studio franchises. Franchisees are required to contribute a percentage of their gross revenues to this fund, as detailed in Section 6.3a, with Degree Wellness also contributing for any Studios they own or their affiliates own.
This lack of guarantee means that franchisees may not see a direct or measurable return on their advertising fund contributions in their specific location. The fund's resources can be allocated based on Degree Wellness's overall strategy, which may prioritize certain markets or initiatives over others. While Degree Wellness commits to providing an annual, unaudited statement of monies collected and costs incurred by the fund, the ultimate impact on individual franchise performance is not assured. Prospective franchisees should consider this when evaluating the potential benefits of the Degree Wellness franchise opportunity.