How does Degree Wellness handle payments to third-party providers for website and technology services?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
We have contracted with third parties to provide web site design, maintenance, hosting, and search engine optimization for our franchises, and certain technology-related administrative expenses. You will be required to use all such services. You will pay us a fee for such services, and we will pay the third-party providers directly. The amount you pay us may be less or more than the amount we pay to the third-party providers and may be used to offset internal costs related to the stated purposes of this fee.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness has contracted with third-party providers to handle website design, maintenance, hosting, and search engine optimization, along with certain technology-related administrative expenses for its franchisees. Franchisees are required to use these services.
The FDD specifies that franchisees will pay a fee to Degree Wellness for these services, and Degree Wellness will then directly pay the third-party providers. This means that franchisees do not have the option to contract with their own providers for these services; they must use the providers selected by Degree Wellness.
The amount franchisees pay to Degree Wellness may be different from the amount Degree Wellness pays to the third-party providers. Degree Wellness may use the difference to offset internal costs related to the stated purposes of the fee. This arrangement gives Degree Wellness control over the quality and consistency of these services across all franchise locations, but it also means franchisees have less control over costs and vendor selection.