If a Degree Wellness franchisee participates in an Advertising Cooperative, how is the amount of their contribution determined?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Local and Regional Advertising Cooperatives. We may, from time to time, form local or regional advertising cooperatives ("Advertising Cooperative") to pay for the development, placement and distribution of advertising for the benefit of Studios located in the geographic region served by the Advertising Cooperative. Any Advertising cooperatives established by we will be operated solely as a conduit for the collection and expenditure of Advertising Cooperative fees for the aforementioned purposes. If we form an Advertising Cooperative for the region in which your Studio is located, you agree to participate in the Advertising Cooperative pursuant to the terms of this Section 11.3 in the amount we determine.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness may form local or regional advertising cooperatives to develop, place, and distribute advertising for the benefit of studios in a specific geographic region. If Degree Wellness establishes an Advertising Cooperative for the region in which a franchisee's studio is located, the franchisee agrees to participate in the Advertising Cooperative. The amount of the contribution is determined by Degree Wellness.
This means that Degree Wellness has the discretion to decide the contribution amount for franchisees participating in these advertising cooperatives. This contribution is separate from the 1% of gross revenues that franchisees must contribute to the Brand Fund, with a maximum of 2% of gross revenue.
As a prospective franchisee, it is important to note that the contribution amount for the Advertising Cooperative is not fixed and can be determined by Degree Wellness. Therefore, it would be prudent to inquire about the typical contribution amounts for Advertising Cooperatives in different regions and the factors that Degree Wellness considers when determining these amounts. Understanding these factors can help a franchisee better plan their budget and marketing strategies.