What happens to advertising monies or credits offered by suppliers to Degree Wellness franchisees?

According to Degree Wellness's 2025 Franchise Disclosure Document, any advertising monies or credits offered by suppliers to Degree Wellness franchisees based on their purchases are collected by Degree Wellness and remitted to the advertising fund. This means that if a supplier provides a discount or credit specifically for advertising purposes based on a franchisee's purchases, those funds are directed into the central advertising fund managed by Degree Wellness.

The advertising fund is used for various marketing and promotional activities, including television, radio, magazine, billboard, newspaper, internet, and other media programs. It also covers costs associated with marketing research, website development, search engine optimization, social media, and administering regional and multi-regional advertising programs. Degree Wellness has sole discretion over the advertising programs financed by the fund, including the creative concepts, materials, endorsements, and media used.

Degree Wellness accounts for the advertising fund separately from its other funds and will not use it to cover general operating expenses, except for reasonable salaries, administrative costs, and overhead related to administering the fund and its advertising programs. Degree Wellness will prepare an annual, unaudited statement of monies collected and costs incurred by the fund, which is available to franchisees upon written request. This ensures some level of transparency regarding the fund's financial activities.

This arrangement centralizes advertising revenue and ensures that supplier contributions are pooled for broader marketing efforts. While franchisees do not directly control these specific advertising dollars, they benefit from the collective advertising and promotional activities managed by Degree Wellness. Prospective franchisees should consider this system as part of their overall marketing strategy and understand that supplier-driven advertising benefits are managed centrally.