How does Degree Wellness handle vendor payments made on behalf of the franchisee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Vendor Payments | Actual costs | As invoiced | We may negotiate master agreements with approved or mandated vendors which require that we pay the vendor directly on your behalf. If we do, you will pay us the amounts due to the vendor, and we will, in turn, pay the vendor on your behalf. |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness may negotiate master agreements with approved or mandated vendors, requiring them to pay the vendor directly on behalf of the franchisee. In this case, the franchisee is then required to pay Degree Wellness the amount due to the vendor. Degree Wellness will, in turn, pay the vendor.
This arrangement means that Degree Wellness franchisees may not directly manage payments to certain vendors if Degree Wellness has negotiated a master agreement. Instead, franchisees will remit payment to Degree Wellness, who then handles the payment to the vendor. The actual costs for vendor payments will be passed on to the franchisee, and these payments are due as invoiced.
This system could benefit franchisees by leveraging Degree Wellness's negotiating power to secure better rates with vendors. However, it also means franchisees must ensure they have the funds available to pay Degree Wellness promptly according to the vendor invoices to avoid any potential disruptions in service or late payment penalties. Franchisees should clarify with Degree Wellness which vendors are subject to these master agreements and the payment terms associated with each.