When is the Initial Franchise Fee for a Degree Wellness franchise deemed fully earned and non-refundable?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Initial Franchise Fee; Initial Training Fee. The Initial Franchise Fee and Initial Training Fee that are payable in a lump sum upon execution of your Franchise Agreement is
disclosed more fully in Item 5, and is deemed fully earned and non-refundable upon payment.
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- Training Program Expenses. These are the costs that we estimate for you and up to one (1) additional person to attend the portion of our Initial Training Program that takes place at a corporate training location (currently Michigan).
In addition to the Initial Training Fee, you are responsible for the costs associated with attending training.
These costs include transportation, meals, and lodging.
Your total cost will vary based on who you choose to attend, how far they have to travel, and the type of accommodations you choose.
These costs are typically non-refundable, but you should ask about refund policies before you patronize any vendor.
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- Studio Layout, Architect, Engineer, Drawings, and Permits.
This range includes our required Architect's fee for your Studio's complete construction drawings as well as any construction permits.
Source: Item 7 — Estimated Initial Investment (FDD pages 22–26)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Initial Franchise Fee and Initial Training Fee are payable in a lump sum upon the execution of the Franchise Agreement. These fees are deemed fully earned and non-refundable upon payment. This means that once a prospective franchisee signs the Franchise Agreement and pays the initial fees, Degree Wellness is not obligated to refund these fees, regardless of whether the franchisee ever opens a studio.
This is a standard practice in franchising, as the initial fee compensates the franchisor for the initial services and expenses incurred in evaluating and setting up a new franchisee. These services can include providing training, site selection assistance, and other pre-opening support. The FDD also states that unless negotiated with a third-party, non-affiliated vendor, all payments disclosed in Item 7 are non-refundable.
Prospective Degree Wellness franchisees should carefully consider this non-refundable policy before signing the Franchise Agreement and paying the initial fees. It is important to conduct thorough due diligence and ensure that they are fully committed to opening a Degree Wellness studio before making this financial commitment. Franchisees should also inquire about the specific services and support they will receive in exchange for the initial fees to ensure they are receiving adequate value.