Can Degree Wellness increase or decrease the Brand Development Fund fee?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Brand Development Fund (the "Fund") | Currently 1% of gross revenues generated by your Franchised Business over the preceding reporting period (your "Fund Contribution") | Due each week on the day we specify (3). | We can increase or decrease the fee at any time. However, your contribution will not exceed 2% of your gross revenues. See Item 11 for additional information. Your Fund Contribution obligations will commence upon the opening of your Franchised Business. |
Source: Item 6 — Other Fees (FDD pages 14–21)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Brand Development Fund fee, referred to as the "Fund Contribution", is currently 1% of gross revenues generated by the franchised business over the preceding reporting period. This contribution is due each week on a day specified by Degree Wellness.
Degree Wellness retains the right to change the Brand Development Fund fee. The FDD states that Degree Wellness "can increase or decrease the fee at any time." However, there is a limit to how much the fee can be increased.
The document specifies that the franchisee's contribution to the Brand Development Fund will not exceed 2% of their gross revenues. This provides a ceiling for the fund contribution, protecting franchisees from potentially excessive fees. The Fund Contribution obligations will commence upon the opening of the Franchised Business.