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Can Degree Wellness increase the required contribution to the brand development fund for Degree Wellness Studios?

Degree_Wellness Franchise · 2025 FDD

Answer from 2025 FDD Document

We require all Degree Wellness Studios to contribute 1% of their gross revenues to the Fund. All Degree Wellness Studio will be required to contribute to the Fund on the same basis as you, respectively, unless prohibited by law. Your required Fund contribution may be increased to

an amount equal to up to two percent (2%) of the gross revenues generated by your Studio upon 60 days' prior written notice of such an increase via the Manuals or otherwise in writing. Other franchised and affiliate-owned Studio will contribute to the Fund in the same amount and manner as franchised Studio subject only to limitations under applicable law.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 32–42)

What This Means (2025 FDD)

According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness currently requires all Degree Wellness Studios to contribute 1% of their gross revenues to the brand development fund. Degree Wellness retains the right to increase this contribution.

Degree Wellness may increase the required brand fund contribution up to a maximum of 2% of the gross revenues generated by a franchisee's studio. Degree Wellness must provide franchisees with 60 days prior written notice of such an increase. This notice can be delivered via the manuals or in writing.

All Degree Wellness Studios, whether franchised or affiliate-owned, will contribute to the fund in the same amount and manner as franchised studios. This is subject to any limitations imposed by applicable law. This ensures that all studios contribute equitably to the brand development fund, fostering a unified marketing effort for the Degree Wellness system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.